City Council
Regular MeetingDeKalb, IL · October 12, 2015
Minutes
MINUTES
CITY OF DEKALB
COMMITTEE OF THE WHOLE MEETING
OCTOBER 12, 2015
The City Council of DeKalb, Illinois held a Committee of the Whole meeting on Monday,
October 12, 2015 in the City Council Chambers of the DeKalb Municipal Building, 200 South
Fourth Street, DeKalb, Illinois.
Mayor Rey called the meeting to order at 5:02 p.m.
A. ROLL CALL
City Clerk Jennifer Jeep Johnson called the roll and the following members of the City
Council were present: Alderman Bill Finucane, Alderman Michael Marquardt, Alderman
Bob Snow, Alderman Kate Noreiko, and Mayor John Rey. Alderman Dave Baker
arrived at 5:06 p.m. and Alderman Dave Jacobson arrived at 5:53 p.m. Alderman Monica
O’Leary was absent.
Also present were: Assistant City Manager Patty Hoppenstedt, City Attorney Dean
Frieders, Finance Director Cathy Haley, Deputy Police Chief Wes Hoadley, Deputy Fire
Chief Greg Hoyle, Community Development Director Ellen Divita, Interim Public Works
Director/City Engineer John Laskowski, Principal Planner Derek Hiland, and City Clerk
Jennifer Jeep Johnson.
B. ITEMS ALSO ON THE REGULAR AGENDA
C. CONSIDERATIONS
1. Strategic Plan Update
Diana Robinson of the Center for Governmental Studies explained that originally,
the timeline for the Strategic Plan was determined by the deadlines for the ABC
grant. The grant was able to be completed by extrapolating the information
needed from the Strategic Planning progress, so it was decided to take extra time
to complete the Strategic Plan properly.
Assistant City Manager Hoppenstedt stated that a finished document would be
presented to Council in November.
2. FY2016 Budget Update.
Finance Director Haley provided information on the current state of the budget,
and explained that the City is trending slightly under projected spending.
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October 12, 2015
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She explained that revenues are trending slightly ahead, around 26%, and
provided data on how the City has made efforts to meet fund balance reserves of
25%, stating that it is healthy, and growing.
She explained that even in the event of an LGDF reduction, the City would be
able to absorb the difference, and still meet the funds required.
She noted that any purchases to be made in excess of $20k would still have to
come before Council for approval.
Alderman Noreiko wondered whether examining numbers from three months
constituted an adequate time period to be able to comfortably project the numbers
for the rest of the year. Finance Director Haley explained that they are quite
conservative in their projections and are comfortable with the numbers.
Alderman Snow expressed his belief that hiring is important, but waiting two to
three months is reasonable, given the uncertainty surrounding the State’s budget.
Alderman Finucane expressed concern with how the lack of a passed state budget
could impact NIU students and further affect the City’s revenues, and that
forestalling hiring until we are more certain of the future would be prudent.
Mayor Rey asked Finance Director Haley to explain some of the other impacts of
Illinois’ budget, and she clarified that as yet, there have been no cuts, but rather
some funds have not been disbursed.
Mayor Rey echoed Alderman Snow’s concern with staffing, advising that we go
about them cautiously, as they are long term commitments.
Finance Director Haley stated her belief that while they are going to be cautious,
some of the roles are considered critical purchases for the sake of operation.
Assistant City Manager Hoppenstedt added that the Director of Human Resources
staffing decision will take three to four months, and mentioned a couple of
projects that have been stalled until the role is filled. She said that delaying until
after a state budget is passed will negatively impact the City, and that they will
monitor the numbers very closely.
Alderman Finucane inquired as to whether filling these roles is a decision that
would come before Council for approval.
Attorney Frieders explained that he doesn’t believe there is a limitation in place to
bring hires for individual approval, if they are already a part of the staffing plan
and budget.
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October 12, 2015
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Alderman Snow expressed his opinion that the City should wait until there is a
state budget, with which Alderman Baker agreed.
Alderman Marquardt expressed his opinion that the City should move ahead with
the hiring as they are critical to enacting strategic goals. He expressed belief that
it is best for the City as a whole to move forward with the hires.
Alderman Noreiko expressed concern over the lack of a state budget, but agreed
with Alderman Marquardt that the City should begin with the initial steps of
recruitment.
Alderman Baker clarified that staff will not be in front of the Council again,
unless Council agrees on limiting the power.
There was consensus that Council would like to see an action item on the new
personnel hiring issue brought back for discussion at the next Council meeting.
Alderman Finucane desired to attach the Public Works Director to the discussion,
and Assistant City Manager Hoppenstedt explained that there have already been
interviews scheduled, and offers prepared, and that Council would be updated.
D. PUBLIC PARTICIPATION
There was none.
E. RECESS FOR EXECUTIVE SESSION OF THE CITY COUNCIL
1. Approval to Hold an Executive Session to Discuss Collective Bargaining and
Compensation as Provided for in 5 ILCS 120/2(c)(2).
MOTION
Alderman Snow motioned to move into Executive Session; seconded by
Alderman Marquardt.
VOTE
Motion passed on a 6-0-2 roll call vote. Aye: Finucane, Marquardt, Snow,
Noreiko, Baker, Rey. Absent: Jacobson and O’Leary. Mayor Rey declared the
motion passed.
Alderman Jacobson arrived at 5:53 p.m.
MOTION
Alderman Jacobson motioned to adjourn Executive Session; seconded by
Alderman Baker.
VOTE
Motion passed on a 7-0-1 voice vote. Mayor Rey declared the motion passed.
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October 12, 2015
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F. ADJOURNMENT
MOTION
Alderman Finucane moved to adjourn Committee of the Whole; seconded by Alderman
Jacobson.
VOTE
Motion passed on a 7-0-1 voice vote. Mayor Rey declared Committee of the Whole
adjourned at 6:14 p.m.
____________________________________
JENNIFER JEEP JOHNSON, City Clerk
Approved by Council: October 26, 2015
Agenda
AGENDA
Committee of the Whole Meeting
October 12, 2015
5:00 p.m.
A. Roll Call
B. Items Also on the Regular Agenda
C. Considerations
1. Strategic Plan Update.
2. FY2016 Budget Update.
D. Public Participation
E. Recess for Executive Session of the City Council
1. Approval to Hold an Executive Session to Discuss Collective Bargaining
and Compensation as Provided for in 5 ILCS 120/2(c)(2).
F. Adjournment
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October 12, 2015
DATE: October 7, 2015
TO: Honorable Mayor John Rey
City Council
FROM: Anne Marie Gaura, City Manager
Patty Hoppenstedt, Assistant City Manager
Lauren Stott, Management Analyst
SUBJECT: Update from the Center for Governmental Studies at Northern Illinois University
on DeKalb’s Strategic Plan Process.
I. Summary
The Center for Governmental Studies (CGS) at Northern Illinois University has recommended a
change in the timeline for the City of DeKalb Strategic Plan. Under the new timeline, the draft
Plan will be presented to the City Council in November. This recommended change will require
no financial consideration. The timeline adjustment will allow additional time for CGS to work
with City staff to effectively align strategies and action steps to the visions and goals.
II. Background
The City of DeKalb initiated its Strategic Planning process in 2014 with the Center for
Governmental Studies at Northern Illinois University. The end result will be a Strategic Plan
document that outlines a comprehensive vision for the City over the next decade. Using the draft
plan framework shaped by the various Community Conversations and the August 20th City Council
planning retreat, CGS is now working with City staff in reviewing the proposed visions and goals
to determine what future activities should be planned.
The Executive Team is closely reviewing the plan to ensure that City activities moving forward
align with the new framework. Additional time, recommended by the Center for Governmental
Studies, will ensure all needs revealed throughout the planning process are addressed. Diana
Robinson, Director of CGS will be at the October 12th Committee of the Whole Meeting to provide
an update and answer any questions of the City Council.
III. Community Groups/Interested Parties Contacted
Community input was gathered from Community Conversations and other targeted meetings
throughout the spring and summer of 2015. This input has helped guide the City’s draft vision,
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goals and strategies. It has also led to the determination that City staff requires more time to
address community needs and help identify specific actions to accomplish these goals.
Additionally, the America’s Best Communities Grant Committee is utilizing information from the
City’s Strategic Plan process to guide its application. The City is working with the Committee to
ensure appropriate and necessary updates are provided and the grant application process is not
jeopardized by the timeline extension.
IV. Legal Impact
There is no anticipated legal impact.
V. Financial Impact
There is no financial impact to consider.
VI. Options
The City Council may choose to approve, deny or provide further clarification to the request.
VII. Recommendation
It is recommended that the City Council approve the recommendation of a timeline extension for
the Strategic Plan process.
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October 12, 2015
DATE: October 7, 2015
TO: Honorable Mayor John Rey
City Council
FROM: Anne Marie Gaura, City Manager
Cathy Haley, Finance Director
SUBJECT: FY2016 Budget Update.
I. Summary
A FY2016 Budget update is being provided to summarize the status three months into the fiscal
year and highlight the impact of the State’s lack of adopting its own budget.
II. Background
FY2016 City Budget Update
After completing the first quarter of the fiscal year, a FY2016 Budget update is being provided.
After three months, expenditures should be trending at around 25%. General Fund expenditures
are trending slightly behind at 22.62% and revenues appear to be trending slightly ahead at 26.10%.
PRELIMINARY THROUGH PERIOD 3, FISCAL YEAR-END 2016
GNERAL FUND BUDGET YTD ACTUAL AVAILABLE PCT USED
EXPENSES
Legislative 317,232 70,591 246,641 22.25%
Administration 1,023,153 232,871 790,282 22.76%
Human Resources 329,227 46,761 282,466 14.20%
Finance 1,455,212 325,909 1,129,303 22.40%
Police 12,136,480 2,817,691 9,318,789 23.22%
Fire 9,735,518 2,448,840 7,286,678 25.15%
Public Works 3,609,193 674,419 2,934,774 18.69%
Community Development 1,412,338 172,584 1,239,754 12.22%
General Support 4,397,584 996,631 3,400,953 22.66%
TOTAL EXPENDITURES 34,415,937 7,786,297 26,629,640 22.62%
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The City is also showing actual income tax revenue for the first three months of FY2016 trending
ahead of budgeted revenue by more than 11%. Projecting this out through the remainder of
FY2016 would show actual income tax revenue coming in over budget by more than $480,000.
In addition to the budgeted surplus of $502,743 for FY2016, the City could end FY2016 close to
$1,000,000 with revenues exceeding expenditures.
As seen on the chart below, the City of DeKalb has been working diligently on getting the General
Fund Balance reserve levels back up to be in compliance with the City’s fund balance policy of
25%. Reserves dropped to a low of 1% ($22,169) back in FY2010. Since then, the focus of
establishing the 25% fund balance has been both a goal and a priority.
With the FY2015 audit in full swing, initial projections are showing the City fund balance
rebounding quicker than initially projected during the FY2016 budget process. Current rough
projections are showing the City at 22% at the end of FY2015 or over $7,000,000, and over 23%
by the end of FY2016 based on budgeted numbers. This could bring fund balance reserves
somewhere between $7,000,000 and $8,000,000, which is the strongest it has been in over 10
years.
FY2016 State of Illinois Budget Update
The City has been closely monitoring pending legislation at the State level to stay abreast of any
issues that may have an impact on the City. The City is now three months into FY2016 and the
State still has not passed its FY2016 Budget nor has there been any indication that it is close to
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being adopted. As you may recall, the Governor’s budget proposal originally called for a 50%
reduction to the Local Government Distributive Fund (LGDF) or more commonly known as the
municipal portion of the State Income Tax.
Currently, the original 50% reduction to LGDF has been taken off the table. The most recent bill
that appears to be a possible “recommendation” is a 10% reduction in LGDF. A 10% reduction in
LGDF for the City of DeKalb would equal about $450,000 which is less than the budgeted surplus
of $502,743 for FY2016. At this time, there is no reliable information to indicate if there could be
a LGDF reduction, how much the reduction would be, when the reduction would take place or for
what period of time. In the event a 10% reduction took place, the City could absorb it in the
General Fund budgeted surplus.
While the City’s fund balance is on the re-bound and this is excellent news, staff will continue to
monitor the State budget process. The increase in the City’s fund balance over the last five years
has helped put the City in a position to withstand a temporary reduction in the LGDF. Anything
long-term at this point is pure speculation and continues to make it difficult to plan for the future
needs of the City.
III. Community Groups/Interested Parties Contacted
Community input was initially gathered through the extensive FY2016 Budget process, which
included multiple Joint City Council and Finance Advisory Committee Meetings as well as a
Public Hearing at the June 8, 2015 City Council Meeting.
IV. Legal Impact
There is no anticipated legal impact.
V. Financial Impact
Moving forward with the all of items for the FY2016 budget year will have minimal financial
impact based on a strong fund balance at the end of FY2015, a budgeted surplus of $502,743 in
FY2016 and income tax revenue increasing and coming in stronger than originally projected
during the budget process by more than $480,000.
VI. Options
The City Council may choose to approve, deny or provide further clarification to the request.
VII. Recommendation
Based on all of this information, staff would move forward with all budgeted items in the
General Fund, including new purchases, plans and personnel. Note, all items to be purchased or
contracts to be awarded over $20,000 would still be brought to the City Council for approval
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during a regular Council meeting throughout this fiscal year. The total amount of all these new
items equals $374,551, which is about 1% of the total General Fund expenditures.
Moving forward with the all of items for the FY2016 budget year will have minimal financial
impact based on a strong fund balance at the end of FY2015, a budgeted surplus of $502,743 in
FY2016 and income tax revenue increasing and coming in stronger than originally projected
during the budget process by more than $480,000.
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