City Council

MINUTES SPECIAL MEETING OF CITY COUNCIL CITY OF DEKALB May 11, 2013 The City Council of DeKalb, Illinois, held a Special Meeting on Saturday, May 11, 2013 at 8:30 a.m. in the Council Chambers of the DeKalb Municipal Building, 200 South 4th Street, DeKalb, Illinois. Notice was given and the meeting was called pursuant to the provisions of Chapter 2, Section 2.05 of the Municipal Code of the City of DeKalb, Illinois. Mayor Rey called the meeting to order at 8:32 a.m. A. ROLL CALL: Deputy City Clerk Wright called the roll and the following members of City Council were present: Mayor John Rey, Alderman David Jacobson, Alderman Bill Finucane, Alderman Bob Snow, Alderman Ronald Naylor, Alderman David Baker and Alderman Monica O’Leary (arrived at 8:35 a.m.). Absent was Alderman Kristen Lash. Additionally present were members of the Finance Advisory Committee: Lon Clark, Chris Fricker, Connie Golden (arrived at 1:05 p.m.), Mike Peddle, and Gary Peele. Absent were David Conlin and Tom Teresinski. Also present were: Mark Biernacki, City Manager; Rudy Espiritu, Assistant City Manager; Eric Hicks, Fire Chief; Wes Hoadley, Deputy Police Chief; T.J. Moore, Public Works Director; Laura Pisarcik, Finance/Purchasing Director; Greg Hoyle, Deputy Fire Chief; Jeff McMasters, Assistant Fire Chief; Joel Maurer, Assistant Public Works Director – Engineering/Transportation; Derek Hiland, Principal Planner; Jennifer Diedrich, Economic Development Coordinator; Roger Hopkins, Economic Development Consultant; Jeff Birtell, IT Technician; Tammey Higgins, Deputy City Clerk; and Diane Wright, Deputy City Clerk. Mayor Rey welcomed all to the workshop and stated Mr. Biernacki would explain the process today and introduced staff. Mr. Biernacki stated this is a workshop to explain the budget and answer questions. The first reading of the budget ordinance will be heard at the May 28th regular meeting and the second reading will be held at the June 10th meeting. He stated that comments made today will be recorded by staff and put into amendments for Council consideration at the future meetings. Finally, he said that Ms. Pisarcik will present the budget overview and department heads. Ald. O’Leary arrived at 8:35 a.m. Ms. Pisarcik provided an overview of the budget. She commented on strategic goals set by Council last year and advised that Revenues will exceed expenditures. She commented that in 2009 the General Fund balance was $22,000; staff expects to achieve the projected 25% General Fund balance by 2020. Ms. Pisarcik continued on with Revenue items commenting on the increase on new property taxes to $.72/$100 which funds pension coverage; a decrease in sales tax revenue of approximately 1%; MFT amount increased by $500,000. Also commented on was Local and Restaurant tax – down slightly Special Meeting May 11, 2013 Page 2 of 7 based on 5-year trend. Mr. Peddle inquired about property taxes regarding pension costs. This was discussed and clarified. Questions were asked and answered regarding ambulance rates, collections and rate of collections. Ald. Baker – page 19 pointed out current fund balances. He stated that Council asked staff to make the funds whole. He stated if the funds were kept separate, he cautioned Council to not believe there is $5 million. Additionally, he wanted the $227K kept separate (Crime-Free) from the rest of the General Fund. Ms. Pisarcik stated there are expenditures to offset the revenue. Mr. Biernacki stated the expenses are General Fund expenses and need to be noted there. Mr. Peddle stated that funds could be earmarked within the General Fund. Ald. Jacobson stated only $3,200 is noted in tow fines. Ms. Pisarcik stated that is the figure reimbursed to the city. Ald. O’Leary arrived at 8:35 a.m. Extensive comments were made about the General Fund balance and Ald. Baker reiterated that the $5 million is a false number. Ms. Pisarcik discussed the TIF areas that are ending in the near future and noted that there is a plan in place when these monies will no longer be available. Chief Hicks discussed the Fire Department budget including staff numbers. There were some slight increases in pensions, he said. Ms. Pisarcik stated we are at 48% and the goal is 75%. Chief Hicks noted the drop in workman’s compensation. Chief Hicks commented on additional line items: spending 52K in fuel annually; vehicle maintenance flat; training is $42K; $25K reserved for firefighters to go off-duty for schooling; the remainder is training for new officers. He spoke about having to cut back on Technical Rescue Team and Hazmat; may have to consider discontinuing the service or refunding it. Service is now provided at the bare minimum level, he said Mr. Peele inquired about the hiring process for new employees. Chief Hicks stated it takes nearly two months to hire. Mr. Peddle inquired as to the drop for workers compensation – Ms. Pisarcik clarified that it was based on prior year’s history and close to actuals. Discussion followed regarding further clarification on status of new hires for the Fire Department and the resultant reduction in overtime costs. Ald. O’Leary requested further clarification on the HAZMAT/Technical Rescue program and costs for updating the program and stated she wants the funding found to bring the program current. Mr. Peddle inquired as to whether the Fire Department’s ability to respond has been affected and asked that Council be given an idea of the number of responses that had been performed over the past. Chief Hicks advised that the Department had been able to respond to all requests. Deputy Police Chief Wes Hoadley offered Chief Lowery’s apology for his absence. He then commented on the handout from Chief Lowery addressing a restructuring of the Police Department to enable the Department to be more proactive. This restructuring provides justification for the addition of four (4) new police officers. He commented that the budget remains status quo. Ms. Pisarcik advised that the Police Department went live two (2) weeks ago with the new OSSI system which had been approved by Council 2 years ago. Ald. Baker commented that the addition of the new Crime-Free Housing and Inspection Bureau should be in the Police Station. Ms. Pisarcik advised that this concern would be addressed when the new Police Station opened.  Special Meeting May 11, 2013 Page 3 of 7 T.J. Moore then addressed the meeting to discuss the Public Works section. He provided a brief background on the department and advised that the budget was status quo from the prior fiscal year. He commented on a number of items in this segment including: costing for maintenance of new Police Station being based on only a half year of service; advised attendees that as the Police Department would be moving into a fully-furnished facility – costs for the move were minimal. Ms. Pisarcik advised that anticipated costs were contained in the bond funds. Mr. Moore also advised that line item 8235 – snow/ice control had experienced an increase over prior year as a result of materials being used for the late-season weather conditions experienced. He shared that the funding for Emerald Ash Borer detection had been reduced; that staffing costs for the Street Department had been reduced by 20%, and that overall, the Street Department was using technology to increase efficiencies and being very judicious on using existing funding. Discussions followed regarding maintenance on streets, the department’s approach on prioritizing maintenance, using Infrastructure Management Systems to produce a catalog of City streets and the expectation that the information would be available in the next 6-8 weeks. Mr. Moore then commented on the Planning & Economic Division budget segment. Discussion was held regarding funding production of a comprehensive plan; the last plan was produced in 2005 and had not been updated since. Further discussion and clarification of line items under this segment were held. Water Fund was the next item to be addressed by Mr. Moore. He advised that the proposed budget was relatively flat, there was an upcoming water rate increase which was tied to the CPI and expected to be 1%. Ald. Naylor voiced his concerns regarding tying the rate increase to the CPI and that there was a need for a formal water rate analysis which would provide for future forecasted needs. Ms. Pisarcik advised this concern would be noted. Mr. Moore continued with advising of new lead requirements of meters; creation of new program to replace meters utilizing an ultra-sonic technology. Questions and clarifications relating to meter inefficiencies, water loss and tracking of same followed. Ald. O’Leary questioned the increase of line item 8328. Bryan Faivre advised that a leak detection survey had been performed because of a significant loss of water. Mr. Moore advised that this survey had been budgeted. Additional discussion followed. Mr. Moore then addressed the Airport Fund advising attendees that it was self-sustaining and had become a cargo hub. Ms. Pisarcik pointed out that in 2011, a $2.5M transfer had been made, while in FY14, there was no transfer needed. Mr. Moore advised that current project funding broke out to Federal – 95%, State – 2.5%, and Local (City of DeKalb) – 2.5%. This is being changed and the future level will be 5%. Ald. Naylor inquired as to any type of contractual marketing effort on behalf of the airport. Mr. Moore advised that efforts were produced internally, there was no funding budgeted for this type of effort. Ald. Naylor stated that he wanted this item re-visited before final budget approval. Mr. Moore commented on the budget segment for the Building/Engineering/Transportation Division. Joel Maurer joined him to address any questions or concerns of attendees. Mr. Maurer reviewed Building Department staffing levels, the 2-year contract outsourcing electrical inspections, and consultant costs for street maintenance programs. Mr. Maurer then reviewed Transportation staffing levels and the structure and function of the department. He commented on the monthly MFT revenue, explained the project listing, and spoke about the bike trail grant funding. Ald. Naylor commented on his concerns regarding legitimate usage of MFT funds. Special Meeting May 11, 2013 Page 4 of 7 Ms. Pisarcik addressed the Legislative segment of the budget. She advised that the Clerk’s salary and travel items had been moved under the Legislative budget. She further advised that the 4th of July fireworks was included along with the Park District funding. Mr. Espiritu commented on the Administrative Services segment. He advised that Human Resources Department was now under its own budget segment, no longer included within the City Manager’s segment. He also advised that the Clerk’s Office staffing had been placed under the City Manager’s segment with all required duties being performed. Questions and clarifications followed regarding the structure of the support staff for the City Manager’s office. Mr. Espiritu commented on the staffing submittal for the Human Resources Department and advised attendees that the City Manager search was not being conducted through the Human Resources Department. Additional discussion was held regarding the relocation of the elected Clerk position and the staffing of the City Manager’s and Clerk’s offices. Mr. Espiritu then addressed the Information & Technology Division. He advised that the proposed budget included costs for contract services for maintenance of the new Police Station software, the continuing plan of replacement of outdated computers, the provision of providing a stipend to each Council member for the purchase of a tablet with the intent that once every Council member had purchased a tablet, the agenda packet would then go paperless. Ald. Naylor inquired about the maintenance expense for the Police Station as being an ongoing expense. Mr. Espiritu replied that it would be an ongoing expense which provided for immediate response from the vendor to issues with the system. The Legal Division segment was then presented by Mr. Espiritu. He advised attendees that the contracted services item had been increased to reflect expected additional services from the City’s labor attorney. Mr. Espiritu reviewed the Financial Services Division segment. He commented on the staffing breakdown and advised attendees that the budget was status quo from the previous year. Mr. Espiritu provided clarification on allocating workers compensation costs in response to an inquiry by Ald. O’Leary. Ms. Pisarcik provided an overview of the General Support segment and items covered therein. She then proceeded to the Special Funds segment and gave attendees background on the structure and items contained therein. These items included implementation activities related to the EPI report; City Manager recruitment search; IHSA Championship funding request; a contingency fund for unknown issues that may arise; consideration of restoring the special event amount of funding for the Chamber of Commerce to $45,000 from Council’s previous direction to allocate $25,000; Emerald Ash Borer program update and creation of strategic goals; Communiversity Joint Planning effort; Crime-Free Housing updating data to keep information current Ald. Baker commented on the issue of the special events position being funded for $25,000 instead of $45,000 and being transferred from Re:New DeKalb to the DeKalb Chamber of Commerce. Ald. Baker advised it was his wish that the funding would be zero if not taken from the TIF funds. Ald. Snow stated his belief that if the position was appropriate before – it should be now and that Council should not cut the funding. Mayor Rey advised he supported the funding as a transition or interim bridge as the position transferred to the Chamber of Commerce. Ald. Naylor commented that he did not want to see the initiatives started under Re:New DeKalb stopped and that he also supported a  Special Meeting May 11, 2013 Page 5 of 7 transition funding over a period of 2-3 years; he stated that the City needs to participate in the support of this function. Mr. Biernacki advised the attendees that not all of the funding came from the General Fund and advised that it was in Council’s authority to restore the special events position to $45,000. Ald. Finucane voiced his support for the position but advised he would excuse himself from a vote on the item because of his participation in the Chamber. Ald. Jacobson commented that the City was supplementing 5 – 6 events over a number of years, and questioned when the support would end. Ald. Baker commented on the participation of the private sector in providing funding for these events, the application of TIF funds, the Re:New DeKalb mission, and providing funding to the Chamber when taking over downtown events. He suggested that the position be brought back to the City or it be funded by a private sponsor, and his belief that no funding should be provided to the Chamber. Mr. Peele inquired as to the potential expansion of the funded position to activities beyond the downtown area. Mr. Biernacki advised that could be a consideration. Ald. Snow commented on his concern that the events would disappear without the position. The next segment to be addressed was the Refuse and Recycling Fund. Discussion followed relating to concern that costs were being borne by general users, not “free users” such as the Park District, landscape dumpsters, street sweeping dumpsters, etc. Direction was given to find a method to keep current price structure for residents and find another way to levy costs against other users. Staff was directed to bring this item back for discussion. Mr. Maurer provided an overview on both the Transportation Fund and Motor Fuel Tax Fund segments. The Housing Rehabilitation Fund/CDBG segment was addressed by Mr. Moore. He advised attendees that the Council had already approved this funding back in February as it was required by HUD. He gave a brief background on the aspects of this segment. Mr. Biernacki added that this would be the first year in many that a block grant would be spent on a capital project – 1st Street watermain. Ald. Naylor expressed his concern with the level of funding. Mr. Moore gave a brief background on the effort expended in providing this service. Mr. Biernacki advised the attendees that it was their discretion to decide if it was worth going forward with this program. Ald. Naylor brought up the issue of flood plain property purchased. It was decided that this concern would be brought up for future discussion. Ms. Pisarcik introduced the Special Service Area Fund segment to the attendees and provided background on the multiple items covered by the segment. Chief Hicks presented the Foreign Fire Insurance Tax Fund segment to the attendees advising them that the basis of this item was the provision for the potential of going outside the state for insurance. Two percent (2%) of that funding goes to the Foreign Fire Fund and is distributed by the Board. The money is used to purchase beds, furniture, equipment and any other items needed by the Fire Department, he said. The workshop adjourned for lunch at 11:56 a.m. Mayor Rey reconvened the workshop at 12:25 p.m. The Tax Increment Finance District #1 and #2 segment was addressed by Mr. Biernacki. He provided background on the information provided and an explanation of the application of TIF funds. He advised the attendees that TIF #2 expires in 2019. He commented that between now and 2019, Special Meeting May 11, 2013 Page 6 of 7 $1M would be utilized from TIF #2 to fund projects repairing 40% of the streets, alleys, and sidewalks in the TIF #2 area. Ald. Naylor commented that the map of TIF #1 and #2 districts seems to encompass 30-40% of the City. Mr. Biernacki advised that the final version of the downtown plan update was expected in June. He commented on the transfer of funding from the districts and the City Hall reconfiguration project value not being a true budget number, just a placeholder value until the estimates are received on costs for the rehabilitation. Ald. Baker commented on his concern about weaning from TIF funding by 2021. Mr. Biernacki addressed Ald. Naylor’s request for clarification with regard to transfer of funds from TIF #2 to TIF #1. Ald. Naylor also commented on prior Council intent on utilization of funding to put into infrastructure improvements and maintenance and his concern that the funds will be used for that purpose. He advised of his desire to see that 100% of alleys and sidewalks in the TIF districts be repaired before the funding expires. Mr. Biernacki responded that the IMS program will assist in meeting that objective. Ald. Jacobson addressed his concern with the status of replacement of outdated watermains. Mr. Biernacki and Mr. Moore addressed this issue. Lengthy discussion followed regarding the reality of scheduling street maintenance in conjunction with watermain replacement projects. Ald. Baker addressed the value assigned to the City Hall project with concern as to where monies would be better spent on street attention. Ald. Naylor responded that the City Hall issue was more critical in his opinion. Discussion followed regarding prior conversations on the City Hall issue relating to building new or remodeling with TIF funds. Ms. Pisarcik then provided background on the Bond and Notes Funds segment. The Capital Funds segment was next addressed by Ms. Pisarcik. She provided background on the fund and multiple items that are included in the funding value. Chief Hicks provided an explanation of the Code Red program along with providing information regarding vehicle leases and engine replacement plans. Discussion followed regarding funding levels assigned to multiple items, including the acquisition of a Police Department canine, application of the Water Fund in acquiring appropriate fleet vehicles and the reoccurring issue of replacement of the Fire Department’s large ladder truck. Mr. Espiritu then addressed the Internal Service Funds segment. He provided background information on the health insurance program and advised attendees that the City had recently been advised that the premium increase would be 4.5% for the coming period. He then commented on the background of the City’s workers compensation coverage program and the implementation of the EPI report recommendation to join a workers compensation pool and seek catastrophic coverage. He advised attendees that the premium cost would be a 5% increase over prior premium. Discussion followed relating to experience trends, increased stabilization as City’s participation is longer in the program, concern that there may be a lack of coverage in case of an catastrophic incident. Additional discussion ensued relating to health insurance costs and unemployment cost experiences. Ms. Pisarcik then introduced the Fire and Police Pensions segment. She provided background on the revenue sources for funding of the Fire Department pension. Ms. Pisarcik then addressed the Police Department pension fund and provided background for that fund. She advised attendees that the Fire Pension Fund was 48% funded and the Police Pension Fund was 56% funded. Mr. Espiritu advised that there was a meeting with Moody’s in the coming week which would be providing a recalibrated rating. He stated that 75% funding for these pension funds was the goal and elaborated on strategies to meet the goal. Mr. Peddle stated that it behooved City Council to find a way to seek relief with respect to the average tax payer and address non-contributors to the services. Ald. Jacobson inquired  Special Meeting May 11, 2013 Page 7 of 7 as to the process for getting the funds to the goal of 75%. Mr. Espiritu responded stating that the EPI report had provided no timeframe. Discussion on approaches to meeting the required goals by 2040 followed. The DeKalb Library Fund was next addressed by Ms. Pisarcik. There were no questions. Mayor Rey provided the meeting with closing comments. F. ADJOURNMENT MOTION Ald. Baker moved to adjourn the meeting; seconded by Ald. Jacobson. Motion carried on voice vote. Mayor Rey declared the meeting adjourned at 2:10 p.m. DIANE K. WRIGHT, Deputy City Clerk ___________________________________________ TAMMEY M. HIGGINS, Deputy City Clerk Approved by City Council May 28, 2013