City Council

MINUTES SPECIAL JOINT MEETING OF THE CITY COUNCIL AND THE FINANCE ADVISORY COMMITTEE CITY OF DEKALB May 17, 2014 The City Council held a Special Joint Meeting with the Finance Advisory Committee on Saturday, May 17, 2014 in the Council Chambers of the DeKalb Municipal Building, 200 South Fourth Street, DeKalb, Illinois. Mayor Rey called the meeting to order at 8:30 a.m. A. ROLL CALL: Deputy City Clerk Wright called the roll of the City Council and the following members were present: Mayor John Rey, Alderman Bill Finucane, Alderman Kristen Lash, Alderman Bob Snow, Alderman Ron Naylor, and Alderman Monica O’Leary. Absent were: Alderman David Jacobson and Alderman David Baker. Deputy City Clerk Wright called the roll and the following members of the Finance Advisory Committee were present: Chris Fricker, Connie Golden, Mike Peddle, Gary Peele, Tom Teresinski and Mike Verbic. Absent was David Conlin. Also present were: Anne Marie Gaura, City Manager; Rudy Espiritu, Assistant City Manager; Gene Lowery, Police Chief; Wes Hoadley, Deputy Chief; Greg Hoyle, Deputy Fire Chief; T.J. Moore, Public Works Director; Jeff Birtell, I&T Technician; and Diane Wright, Deputy City Clerk. B. CONSIDERATION: Review of Proposed FY15 Budget Ms. Gaura stated that revenues would first be discussed. Mr. Espiritu referred to the property taxes item which fully funds the pension funds for Police and Fire; and advised it does not fully fund IMRF or FICA. He also stated that formerly a net number was provided for sales taxes. Going forward, staff will input the gross number, he advised. The expenditures on the sales tax sharing agreements will be reflected in the General Fund. There was an anticipated 2% growth due to price increases, along with an increase due to new businesses in DeKalb. Staff is using projections from the Illinois Municipal League (IML) for local use taxes, he said. In addition, he discussed utility and gas taxes. He noted the decrease in projections for utility taxes revenue in FY15 as compared to actual revenue received is due to the severe weather conditions experienced this past winter. Joint Special Meeting City Council and Finance Advisory Committee May 17, 2014 Page 2 of 5 Crime-free registration of rental properties remains steady, he said. There is slight growth in building permits. Staff is using IML projections for state income tax. Administrative Tow was previously a balance sheet account; going forward it will be shown as revenue in the General Fund and the expenditures will come out of the Police Department, he advised. Mr. Espiritu advised that the additional rate on the property tax bill labeled as “City of DeKalb” actually is for the Library expansion. He added that no expenditures will come from the City. Next, Mr. Espiritu discussed franchise taxes. Ald. Naylor asked if NIU pays any utility taxes. Mr. Espiritu replied he would research and report back. Ald. Naylor asked about the decrease in parking ticket revenue. Mr. Espiritu replied that the Police have been focusing their efforts in the college area; therefore issuance of parking tickets has gone done, along with the elimination of parking staff. Ald. Naylor suggested placing more effort in that area and noted the addition of staff may pay for itself in that area. Chief Lowery added a full-time staff person previously was dedicated to the parking area. Additionally, he said an evaluation could be done to determine if that program could pay for itself. He added that the Community Services Officers are assisting officers with other areas. Mr. Peddle stated that NIU, as a large user of utility services, is able to negotiate a rate for taxes. Ald. Naylor stated it is his understanding that NIU does not pay for utility taxes. Ms. Gaura noted that property taxes do not fully support pension obligations, and the TIF districts will expire in a few years. She added that plans are to create an internal TIF team to develop a six- year plan to develop strategies when TIF districts expire. Mr. Espiritu referred to the Legislative budget and stated this is comprised of Council and Municipal Band and added that Human Services funding is contained in the Legislative budget. The number for Human Services funding will be reduced to $142,900 because the Red Cross has not submitted a request for two years, he said. Ald. Lash stated that discussion took place regarding splitting the $7,000 from the Red Cross amongst the other social services agencies. Mr. Espiritu stated that was not definitively determined and it can be decided by Council as a policy decision. Mr. Espiritu added that Red Cross will only apply for a specific project and they no longer have a local office. Discussion continued regarding the amount and Mayor Rey suggested leaving the amount at $150,000 and Council could discuss it further when the funding requests are brought before Council. Ald. Finucane asked why the funding is in the legislative budget. Mr. Peddle replied it makes sense in that it is a policy decision. Ms. Gaura stated she will bring all items for policy direction forward at the meeting when budget is discussed. Mr. Espiritu next discussed the Finance Division budget and stated that staff is recommending that Finance become its own department. Additionally, the recommendation is that IT will be a division under Finance. He also commented on the fact that Contractual Services include agreements for software, etc. Ms. Gaura stated the suggested change to Finance as a department is one of the highest priorities in the budget. Ald. Naylor suggested IT stay in the City Manager’s office. Ald. Naylor further questioned why contractual services encompass such a large amount. Mr. Espiritu responded that the OSSI program for public safety comprises the largest amount. Ald. Naylor stated this amount should be in the Police Department. Ms. Gaura stated there will be additional changes in the next budget based on input from the new Finance Director. Discussion continued regarding IT becoming a division in Finance. Ald. Lash asked if there is research into hiring a software developer. Ms. Gaura replied she will be looking at how IT can better serve the  Joint Special Meeting City Council and Finance Advisory Committee May 17, 2014 Page 3 of 5 departments; she has not looked at a software developer. Discussion ensued regarding software developer, IT and Finance. Ms. Gaura next discussed Community Development and advised staff is recommending the addition of this department. A Community Development Director would be added, thus the elimination of the contract with our current contractor. Another area would be to outsource building inspections, she said. The Building Division would be moved to this department from Public Works. Ald. Naylor stated he would like to see Roger Hopkins continue in his role as a consultant in that he has ties to the community, has many contacts and has done good things for the City. Additionally, he pointed out he views the Community Development Director being in a conflict as one who seeks economic development and then approves or denies permits. Ms. Gaura responded to Ald. Naylor’s concerns and stated that if there are conflicts, the Director would be removed from the discussion on development opportunities. Mr. Peddle added that conflicts are rampant and it is imperative that the City hire its own Community Development Director. Discussion ensued regarding Mr. Hopkins; economic development progress; and future Community Development Director duties. Mayor Rey announced a break at 10:05 a.m.; the meeting resumed at 10:15 a.m. Mayor Rey asked that discussions move quicker so that the entire budget can be discussed today and asked that 5-10 minutes be allocated to each of the remaining departments. Ms. Gaura next discussed the City Manager’s budget and stated the main item is taking Finance and IT out of this department. It is recommended to add a Management Analyst position to implement an employee wellness program, perform public relations work, coordinate legislative and lobbying issues, etc. Additionally, there is a need to redesign the City’s web page and this will also be addressed, she said. The contract with the lobbyist position would be eliminated. A focus will be to work with the DeKalb County Economic Development Corporation (DCEDC) and make DeKalb an enterprise zone. Additionally, a temporary clerical position will be changed to a permanent part-time position which will cost less to the City. Ms. Gaura addressed long-range planning and stated that staff will work with the NIU Center for Governmental Studies on a ten-year strategic plan. Additionally, the City will work with other agencies on a county-wide survey. Also, the City will consider Phase II of the Housing Study. Ald. Naylor asked what the contracted services are. Mr. Espiritu replied the Legal Division has been moved into the City Manager’s office. The contract services are for 75% of the City Attorney, costs for labor attorney and other specialized legal services. Ms. Gaura stated the Legal Assistant has been combined in the City Clerk’s office, under the direction of the Executive Assistant and cross training will be accomplished for all staff in that office. She added that Dean Frieders acts as the City’s Attorney; Clark Baird Smith provides services for labor negotiations. Ald. Naylor expressed concern that all legal services are not in one account. He strongly recommended that a Legal Division be maintained to address all legal costs. Mr. Espiritu replied staff can provide what is spent on legal services. He added that it is challenging to have one staff person in Legal perform all duties. When that person is absent, the work is not getting done. The City has to be able to train other staff in legal services. He added that multiple duties have to be accomplished by staff in both Legal and Clerk’s offices and cross training is mandatory. Joint Special Meeting City Council and Finance Advisory Committee May 17, 2014 Page 4 of 5 Mr. Peddle agreed with Ald. Naylor that it would be transparent to have all legal services together. Ms. Golden suggested that all legal contract services be noted. Mr. Moore went over the Public Works budget. Questions were asked regarding the Airport’s budget. Mayor Rey asked again that the meeting be moved along. Ald. Naylor stated we may need another meeting as he has questions. He noted the Airport is probably one of the most economic generators that the City has. Ald. Lash suggested regionalization of the airport. Mr. Peddle addressed the issue of airport regionalization and noted that the only way to get a regional airport is through a vote or through a lobbyist. You will have to convince the voters or pass it through a referendum which does not have a chance of passing, he said. He asked why anyone would want to pay for the airport when they are already receiving all of its advantages. The City and federal government are paying for it. Additionally, he asked, if the City is paying for it all, why would it give up control. Ald. Naylor brought up the balloon payment from the Airport. He does not believe it should be paid off, but re-financed, and not come from the General Fund. He suggested re-financing or paying from TIF funds. Ms. Gaura stated that the TIF attorney, Kathleen Field-Orr, does not recommend using TIF funds and the financial consultants also do not recommend re-financing. Ald. Finucane stated we need to get the debt out of the way and suggested paying it off. MOTION Mr. Peddle moved to suspend the 12:00 deadline of the meeting and work to continue discussion; seconded by Mr. Verbic. Motion carried on voice vote. Mayor Rey declared the motion passed. Mayor Rey announced a break at 11:05; the meeting resumed at 11:13 a.m. Mayor Rey announced that he has been informed the meeting will need to end by 1:00 p.m. today. Deputy Chief Hoyle next discussed the Fire Department budget. Discussion ensued regarding overtime, worker’s compensation costs, and vehicle purchases. Ald. Naylor suggested renegotiating the NIU contract. Chief Lowery next discussed the Police Department budget. Discussion ensued regarding personnel, contract account, part-time and temporary assistance, records, FOIAs, Crime-Free housing program. Mr. Espiritu discussed General Fund support and stated this is where an expenditure which doesn’t fit into an individual account is located. He pointed out the sales tax sharing revenues as an example and also referenced special projects, surveys, strategic planning, comprehensive plan, recruitment firms, web page, Year Two of the compensation study, Destination DeKalb (IHSA), Emerald Ash Borer treatments, and update to the housing study. Ms. Gaura added staff was currently advertising for the Finance Director position through the Human Resources Department, but if unsuccessful, would do an RFP for a search firm. Ald. Naylor asked what information the housing study update would provide. Ms. Gaura stated the next phase will update the housing database and add NIU housing data, identifying housing characteristics, etc. Mr. Moore added this was always intended to be a living document.  Joint Special Meeting City Council and Finance Advisory Committee May 17, 2014 Page 5 of 5 Mr. Espiritu next discussed the Capital Project fund and stated the main funding source is home rule motor fuel tax. Ald. Naylor stated the streets are in horrible shape and funds should be set aside for a street program. Ms. Gaura agreed and said that there is no inventory for streets outside of TIF and Public Works has been tasked with gathering this information. Mr. Espiritu next discussed the Public Safety building fund which includes payment of the Police Station and improvements to Fire Stations. Ald. Naylor asked if there is a final cost on the Police Station. Ms. Gaura replied that staff is compiling data and plan to bring it forward at the June 9th Council meeting. Mr. Espiritu next discussed the Motor Fuel Tax fund. Ald. Naylor stated that salt purchases should come from the General Fund; we should not transfer from the MFT fund. Ms. Gaura stated that is the goal but the challenge is that the General Fund has been supporting other funds. Mr. Teresinski encouraged all to look at roads to bring TIF roads up to standards; this would cover one-third of the City. That would mean two-thirds would need to be funded, he said. Mr. Espiritu stated that an update on the Central Area TIF was discussed at the last Council meeting. Mr. Espiritu suggested having closing comments from all in that we need to leave at 1:00. Ald. Naylor said he has questions and another meeting is needed. MOTION Ald. Naylor moved to continue the meeting to Monday, May 19, 2014 at 6:00 p.m.; seconded by Ald. O’Leary. Motion carried on voice vote. Mayor Rey declared the motion passed. Mayor Rey asked for comments on the budget. Mr. Teresinski said it is a positive move to include the Finance Advisory Committee in a more active role. Also, the General Fund balance has increased and sustainability is good. Mr. Peddle stated that Ms. Gaura’s transmittal letter included in the budget is accurate. He complimented Council for having courage for some of the decisions made. Ald. Naylor thanked Ms. Gaura and staff for bringing forward certain items for discussion. C. ADJOURNMENT: MOTION Ald. Naylor moved to adjourn the meeting; seconded by Ald. Finucane. Motion carried on voice vote. At 12:56 p.m. Mayor Rey declared the meeting continued to May 19, 2014 at 6:00 p.m. ___________________________________ DIANE K. WRIGHT, Deputy City Clerk Approved by City Council June 9, 2014