City Council

MINUTES CITY OF DEKALB SPECIAL COMMITTEE OF THE WHOLE MEETING OCTOBER 16, 2018 The City Council of DeKalb, Illinois held a Special Committee of the Whole meeting on October 16, 2018, in the City Council Chambers of the DeKalb Municipal Building, 200 South Fourth Street, DeKalb, Illinois. Mayor Smith called the meeting to order at 5:00 p.m. A. ROLL CALL Deputy City Clerk Scott called the roll and the following members of the City Council were present: Alderman David Jacobson, Alderman Bill Finucane, Alderman Mike Marquardt, Alderman Pat Fagan, Alderman Kate Noreiko, Alderman Mike Verbic, and Mayor Jerry Smith. Alderman Tony Faivre was absent. Also present were: Interim City Manager Molly Talkington, Interim Assistant City Manager Raymond Munch, City Attorney Dean Frieders, Police Chief Gene Lowery, Fire Chief Eric Hicks, Community Development Director Jo Ellen Charlton, Public Works Director Tim Holdeman, Information Technology Director Marc Thorson, and Deputy City Clerk Ruth Scott. B. PUBLIC PARTICIPATION Will Heinisch thanked Council and City staff for wearing multiple hats and working hard. He also noted that he was impressed that cuts were being made to balance the budget rather than raising taxes. C. CONSIDERATIONS Mayor Smith suggested the discussion regarding Proposed FY2019 General Fund Budget Balancing Measures take place prior to the discussion regarding the 2018 Property Tax Levy Direction. There was consensus of the Council to do so. Proposed FY2019 General Fund Budget Balancing Measures. Based on a memo to City Council dated September 14, 2018, and utilizing a PowerPoint presentation titled Budget Balancing Preferences – City Council, Interim City Manager Talkington provided an overview of the Council’s preferences, noting that the Finance Advisory Committee’s (FAC) recommendations were included on each slide. Q1: Increase Ambulance Fee - $311,400 There was consensus among Council to move forward with the fee increase. Regular Meeting of City Council Agenda October 16, 2018 Page 2 of 9 Q2: Restructure False Fire Alarm Fee - $25,500 There was consensus among Council to move forward with restructuring. Q3: Implement Intercept Ambulance Fee - $9,600 There was consensus among Council to move forward with implementation. Q4: Hire Assistant City Manager (at mid-point of the salary range or lower) - ($21,856) There was brief discussion among Council regarding this topic, with a general consensus among Council to move forward. Alderman Noreiko stated that it should be a goal to hire an Assistant City Manager at a rate no higher than the midpoint of the salary range. However, it would be contingent on the qualifications and background of the most qualified candidate. Alderman Jacobson stated he’s not tied to a midpoint range but more interested in the City’s needs and what gaps need to be filled. Alderman Verbic stated he’s concerned there will be a lack of leadership within the Information Technology Department. It’s asking a lot of a person to have a diverse knowledge of Information Technology and Human Resources. Alderman Finucane stated that once a City Manager is in place, we would need to look for an Assistant City who will complement the City Manager, providing strengths the City Manager doesn’t have. Mayor Smith stated that it seemed there was general consensus among Council to move forward, but asked staff to note the “maybes” and where they tie in. Q5: Eliminate Human Resources Director - ($146,412) There was consensus to move forward with eliminating this role. Q6: Eliminate Human Resources Administrative Assistant - ($26,259) There was general consensus to move forward with this elimination. One council member noted concern regarding the impact on Human Resources services. Q7: Increase Human Resources Generalist from Part-time to Full-time - $27,593 Alderman Jacobson noted his concern regarding pension liabilities, stating that perhaps some lower end positions should be hired as part-time employees. Alderman Noreiko Kate noted her support of making this change. While she recognizes the pension liability issues, she’s worried that the department will lose some continuity and attention to detail by not making this a full-time role. Brief discussion ensued followed by a general Council consensus to move forward.  Regular Meeting of City Council Agenda October 16, 2018 Page 3 of 9 Q8: Eliminate Information Technology Director - ($131,830) Interim City Manager Talkington stated that the FAC was not in favor of this proposal and that Council responded with more “maybes”. Discussion ensued regarding this topic, with Council members noting concern regarding the cost of implementing new software, security issues, cyber threats, and halting projects already in motion. Interim City Manager Talkington noted that while the City won’t be on the front end of technology, it employs a Technology Supervisor who can oversee some of the concerns. Brief discussion ensued. Alderman Marquardt asked for clarification, with Interim City Manager Talkington stating it would appear that Council was not in favor of eliminating the role. Q9: Eliminate Management Intern - ($8,334) There was consensus among Council to move forward with the elimination. Q10: Line Item Reductions: CMO/Legislative/Com/Dev - ($30,551) There was consensus among Council to move forward. Q11: Eliminate Tuition Reimbursement Program - ($25,000) Alderman Jacobson stated that perhaps the City should partner with Northern Illinois University to develop a program that would offer continuing education to City staff at zero cost to tax payers, as well as the City. Mayor Smith concurred. Referring to Q10, Alderman Finucane asked what line item reductions would be taken from the Legislative budget. Interim Assistant City Manager Munch replied that training and travel would be reduced. For instance, instead of budgeting for all Council members and the City Clerk to attend the annual Illinois Municipal League (IML) conference, perhaps only four or five would be budgeted on an annual basis. Q12: Elimination of Redundant/Underutilized Software - ($41,261) There was consensus among Council to move forward. Q13: Technology Replacement Reduction - ($11,000) Interim City Manager Talkington stated we have funding in budget to replace software and the intention this year was to better fund technology. However, that didn’t occur this year and it isn’t likely to happen in 2019. Council’s survey responses included two yes, one no, and five maybe. One Council person mentioned having the Information Technology Director complete a comprehensive inventory of existing hardware and define what the City’s needs are prior to that role being eliminated. Q14: Secondary Internet Connection Savings - ($2,200) There was consensus among Council to move forward. Regular Meeting of City Council Agenda October 16, 2018 Page 4 of 9 Q15: Eliminate Account Technician III - ($31,108) There was consensus among Council to move forward. Q16: Eliminate Deputy Chief of Operations - ($176,681) There was consensus among Council to move forward. Q17: Eliminate One (1.00) Firefighter - ($99,353) Following discussion regarding this item, it was the consensus of Council to not move forward. Q18: Eliminate Part-time Office Associate - ($35,186) There was consensus among Council to move forward. Q19: Authorize Firefighter Over-Hire Funding - $49,676 There was consensus among Council to not move forward. Q20: Eliminate Two (2.00) Police Officers - ($77,630) Lengthy discussion ensued regarding this item. Consensus of Council was to move forward with keeping the two positions, eliminating a Police Commander position, not backfilling and eliminating over-hire funding. Q21: Eliminate One (1.00) Police Commander/Add One (1.00) Police Officer - ($32,549) See Q20. Q22: Authorize Police Office Over-Hire Funding - $88,816 See Q20. Q23: Relocate Office Associate - No Cost There was consensus among Council to move forward. Q24: Add Two (2.00) Part-Time Records Clerks Positions - $44,834 There was consensus among Council to move forward. Q25: Reduce City Council Meeting Security Detail - ($7,467) There was consensus among Council to move forward. Q26: Eliminate Street Maintenance Worker - ($44,576) There was consensus among Council to move forward. Q27: Increase Cross-Service Delivery/Adjust Funding Split - ($88,819) There was consensus among Council to move forward. Q28: Eliminate Snow Removal on Arterial Sidewalks - ($35,000) Lengthy discussion ensued regarding this item. Council members concerns with eliminating this service included school children walking on snow and ice covered  Regular Meeting of City Council Agenda October 16, 2018 Page 5 of 9 sidewalks and maneuvering around snow piles near busy streets. Other concerns included businesses not removing snow in a timely manner. Public Works Director Holdeman explained that if Council chose to eliminate this service, Public Works would be challenged with regard to staffing for extra services and noted that the equipment used for the Central Business District and arterial sidewalks is specialized. Following further discussion, there was consensus among Council to move forward with eliminating. Q29: Eliminate Snow Removal on Central Business District Sidewalks - ($30,000) See Q28. Q30: Administrative Assistant Reduction - ($18,088) There was consensus among Council to move forward. Q31: Reorganization of Crime Free and Commercial Property Inspection Programs Interim City Manager Talkington provided an overview of the options, noting that Option C was the favored option. Discussion ensued regarding the history of Crime Free and Commercial Property Inspection Programs. Consensus of Council was to move forward with Option C for the time being. Q32: Reduce/Eliminate Municipal Band Funding - ($43,250) Alderman Finucane noted that the band is now a not-for-profit organization and capable of raising their own funds. He suggested reducing funding by $10,000 (as was done last year) and continue to do so over the next few years. Alderman Noreiko supported the suggestion. Alderman Marquardt did not. Alderman Jacobson noted that the municipal band gets paid more than Council does for they work they do. Mayor Smith noted his support for reducing funding to the municipal band. Discussion ensued. It was the consensus of Council to reduce municipal band funding by $10,000. Q33: Eliminate Metro West/Metropolitan Mayors’ Funding - ($20,350) Mayor Smith stated that while he’s pleased with the services provided by these two entities, he understands the critical nature of the decisions that have to be made. Regular Meeting of City Council Agenda October 16, 2018 Page 6 of 9 Alderman Jacobson stated the City is much better suited by connecting with other college town mayors and comparing ourselves with Macomb and Normal rather than Naperville and Lisle. There was consensus among Council to move forward with eliminating. Q34: Reduce/Eliminate Social Service Agreements - ($144,500) Alderman Verbic stated he’d rather reduce support to the DeKalb Chamber of Commerce and DeKalb County Economic Development Corporation (DCEDC) and increase social service support to help reduce truancy. Alderman Finucane stated that the DCEDC has been helpful in helping corporations and business come into to town to see what DeKalb has to offer. He would hate to reduce support for them. Alderman Jacobson stated that reducing truancy was a D428 issue. Mayor Smith concluded that it was the consensus of Council to not reduce social service funding in FY2019. Q35: Reduce/Eliminate DeKalb Chamber of Commerce Support – ($45,000) Mayor Smith suggested splitting this amount between the Chamber and Mike Embrey, who has also brought events into DeKalb. Alderman Fagan and Alderman Verbic concurred. Alderman Noreiko noted that the Chamber is a not-for-profit organization, while Mr. Embrey’s business isn’t. Community Development Director Charlton provided history on how the Chamber took over scheduling events for the downtown area. Interim City Manager Talkington stated that when working with a for-profit business, quotes and/or proposals are needed. Discussion ensued. There was consensus among Council to not reduce funding to the Chamber for FY2019. Q36: Reduce/Eliminate DeKalb County Economic Development Corporation (DCEDC) Support - ($45,000) There was consensus among Council to not to reduce funding to the DCEDC in FY2019. Q37: Reduce/Eliminate DeKalb County Convention & Visitors Bureau (DCCVB) Support - ($50,000) Alderman Noreiko questioned whether or not the City was paying a proportional amount, wondering if other communities paying their fair share.  Regular Meeting of City Council Agenda October 16, 2018 Page 7 of 9 Mayor Smith stated he doesn’t feel the City is in a position to reduce or eliminate this funding completely. Community Development Director Charlton noted that Northern Illinois University, as well as DeKalb County, provide funding to DCCVB. There was consensus among Council to reduce funding to the DCCVB by $10,000. Q38: Reduce/Eliminate Local Athletic Sponsorships - ($17,500) There was consensus among Council to not reduce funding. Q39: Transition Airport to Fixed-Base Operator Model - ($75,000) There was consensus among Council to not move forward, noting it would be reviewed in the future. There was brief discussion regarding support from other local communities who benefit from the use of the airport. Interim City Manager Talkington noted that discussions regarding regionalizing the airport would take place over the next year. Public Works Director Holdeman provided a brief history of the airport. Q40: Eliminate Non-Bargaining Unit Salary Increase - ($116,449) Alderman Fagan stated that if the City is going to ask the unions to make a concession regarding salary increases, cuts would have to be made to non-bargaining as well. Alderman Noreiko noted that non-bargaining unit employees didn’t receive a raise for FY2018 and advised against not providing them with one in FY2019. She believes there will be morale, recruitment, and retention issues, not to mention salary compression issues, if non-bargaining unit employees do not receive an increase. Discussion ensued with the consensus of Council to support a 1.25% increase for non- bargaining unit employees. Q41: Utilize SUV Fast Response Fire Vehicle - $60,000 There was consensus among Council to not move forward with this item. Q42: Utilize Mini-Pumper Fast Response Fire Vehicle - $225,000 There was consensus among Council to not move forward with this item. Q43: Home Rule Sales Tax Increase - $3,000,000 There was consensus among Council to not move forward with this item. Q44: Restaurant, Bar and Packaged Liquor Tax Increase - $480,000 There was consensus among Council to not move forward with this item. Regular Meeting of City Council Agenda October 16, 2018 Page 8 of 9 Q45: Hotel/Motel Tax Increase - $84,000 There was discussion regarding neighboring communities’ taxes. It was noted that Sycamore doesn’t impose this tax. Following further discussion, the consensus of Council was to move forward with a .5% tax increase. Q46: Electric Utility Tax Increase - $87,500 There was consensus among Council to not move forward with this item. Q47: Gas Utility Tax Increase - $45,326 There was consensus among Council to not move forward with this item. Q48: Implementation of a Self-Storage Facility Use Tax - $62,921 There was consensus among Council to move forward with this item. Q49: Increase Video Gaming Terminal Renewal Fees - $21,500 There was consensus among Council to not move forward with this item. Q50: Implementation of an Amusement/Entertainment Tax – To Be Determined Interim City Manager Talkington provided comments regarding this item and provided her history with the tax. Brief discussion ensued. Mayor Smith asked that this item be returned to a future Committee of the Whole meeting for further discussion. Dwayne Brown commented that he doesn’t think an amusement tax should be imposed, nor should the hotel tax. 2018 Property Tax Levy Direction. Interim City Manager Talkington provided information regarding this topic, explaining EAV growth from last year compared to this year, which is 4%. She noted that questions have come up that we should just look at capturing new growth and not existing growth. She noted that if Council decided to capture only new growth and not existing growth, the financial gap would increase by $245,000. Alderman Jacobson stated that tax payers shouldn’t have to take on any more of the City’s financial burden. There was consensus to dip into the fund balance if further cuts cannot be found in order to offset the $245,000 funding gap.  Regular Meeting of City Council Agenda October 16, 2018 Page 9 of 9 Finance Advisory Committee Budget Balancing Recommendations. It was noted that the FAC’s recommendations were covered during the Proposed FY2019 General Fund Budget Balancing Measures portion of this meeting. Five-Year Financial Plan 2019-2023. It was suggested that continued discussion regarding this topic would continue when Council met with the FAC. D. ADJOURNMENT MOTION Alderman Jacobson motioned to adjourn the meeting; seconded by Alderman Fagan. VOTE Motion carried by a 6-0-2 voice vote. Aye: Jacobson, Marquardt, Fagan, Noreiko, Verbic, Smith. Nay: none. Absent: Finucane, Faivre. Mayor Smith declared the motion passed and adjourned the meeting at 9:18 p.m. ________________________________ RUTH A. SCOTT, Deputy City Clerk Approved by City Council: November 13, 2018.