City Council

MINUTES WOODSTOCK CITY COUNCIL SPECIAL BUDGET WORKSHOP #2 City Council Chambers April 10, 2020 A Special Budget Workshop meeting of the Woodstock City Council was called to order at 2:00 PM by Mayor Brian Sager on Friday, April 10, 2020, in the Council Chambers at Woodstock City Hall. Mayor Sager stated the purpose of the meeting is a Special Budget Workshop in anticipation of formal consideration and adoption of the annual Budget. He noted this meeting is being held under the Mayor’s Emergency Declaration with Council members attending remotely and those attending at City Hall observing social distancing. Noting there are no members of the public attending the meeting in person, he explained the procedures to be used by the City Council, City Staff, and the Public to join today’s meeting, including how comments may be made and questions asked, and invited all to participate A roll call was taken. COUNCIL MEMBERS PRESENT IN THE COUNCIL CHAMBERS: Mayor Brian Sager COUNCIL MEMBERS ATTENDING REMOTELY: Darrin Flynn, Lisa Lohmeyer, Wendy Piersall, Jim Prindiville, Gordon Tebo, and Michael Turner COUNCIL MEMBERS ABSENT: None STAFF PRESENT IN THE COUNCIL CHAMBERS: City Manager Roscoe Stelford STAFF ATTENDING REMOTELY: Assistant City Manager/Finance Director Paul Christensen, Public Works Director Jeff Van Landuyt, Building and Zoning Director Joe Napolitano, Chief of Police John Lieb, Recreation Director Dave Zinnen, Opera House Director Daniel Campbell, Economic Development Director Garrett Anderson, Library Director Nick Weber, IT Director Dan McElmeel, and City Engineer Chris Tiedt, OTHERS PRESENT IN THE COUNCIL CHAMBERS: City Clerk Cindy Smiley. Mayor Sager noted the presence of a quorum. City Clerk Smiley confirmed the agenda before the Council was a true and correct copy of the published agenda. Mayor Sager stated this is the single most important action Council takes in any given year as it prioritizes distribution of the people’s money. Mayor Sager stated Council has had the opportunity to review the budget and go through the list of Departmental Budget Assignments provided by City Manager Stelford. He noted multiple line items will be discussed in the order indicated in that document. He asked Council to focus on three types of questions to be efficient: 1) Are there any issues that need clarification?; 2) Have all items you feel are important for inclusion in this year’s budget been accommodated?; 3) Are there any issues that still need to be addressed? He stated if Council has any changes or concerns Staff will perfect the document for Council’s consideration later in the month. Mayor Sager expressed his gratitude to Mr. Stelford, Assistant City Manager/Finance Director Christensen, and to all Department Directors who have put in time, energy, and effort into this document. Mr. Stelford stated Staff has attempted to provide information in a way to make the discussion easier and more efficient. Mr. Stelford stated there will need to be major adjustments made to this year’s budget as it was created before the impact of COVID-19 were apparent. He opined there will need to be some cuts, noting there will be challenges that are not yet known. Mr. Stelford stated the Illinois Municipal League is working with the Department of Revenue to derive forecasts to give a better sense of what the reductions will be. He stated in addition any steps taken by the Governor and their impact on the City’s finances are unknown at this time. Mr. Stelford stated he has already met with the Department Directors to discuss projects that could be delayed, if necessary, noting Staff will move forward until it gets a better idea of what the future will be. He opined it is likely the Administration will come to Council requesting to use some of the City’s reserves to look for some form of balance noting there are key pieces of information that is unknown at this time. BUDGET REVIEW Mayor Sager reminded those present that discussion will follow the Departmental Budget Assignments provided by Mr. Stelford. Overview – All Funds There were no questions or comments on this item. Personnel Summary In response to Councilman Flynn’s question as to the allocation of the part-time position to Building and Zoning, Mr. Stelford stated it is felt there is adequate work for this position with the new Neighborhood Improvement Program and management of the Landlord Registration Database. He stated while it is felt that all positions are critical, it is likely they will not be filled due to the current situation outlined above. Mayor Sager opined the title used may not indicate the total focus of the proposed position. Councilman Turner stated as the City comes to understand the consequences of everything as far as revenues are concerned, he would hope the addition of new Staff would be delayed as a general rule until more is known. Mayor Sager stated the commitment would be that hiring for any of these positions would not proceed until they are brought back to Council relative to the financial position of the City. In response to a question from Councilman Tebo concerning a reduction of a position at the Opera House, Mr. Stelford stated the Building Manager is no longer part of the Opera House, but is proposed to be transferred to the Public Works Department. He stated the Opera House has reduced a full-time Production Assistant position and turned instead to a number of part-time positions. In response to a question from Councilwoman Piersall concerning the money allocated to the Assistant City Manager, Mr. Stelford stated the Assistant City Manager line item is a stipend that goes to the Department Director serving in that capacity. He noted funds for an Assistant to the City Manager position are allocated in a separate line item and represents a new position. General Corporate Fund Revenues Mr. Christensen noted this is an area where it likely will be necessary to make changes. There were no comments or questions on this item. Finance There were no comments or questions on this item. Audit There were no comments or questions on this item. Illinois Municipal Retirement Fund (IMRF) There were no comments or questions on this item. Social Security Fund (FICA) Mr. Stelford noted funds will be transferred from the General Fund, stating this will have to be revisited and adjusted by year end. There were no comments or questions. Park Development There were no comments or questions on this item. Debt Service Mr. Christensen stated the recommendation is to still move forward with the bond issuance in May. In response to a question from Councilwoman Piersall, Mr. Christensen stated Staff is in the midst of determining the appropriate amount for the bond issuance. Councilman Turner asked Staff to provide additional information regarding which bonds will mature in the next three years. Liability Insurance Fund There were no comments or questions on this item. Health Insurance Noting the condition of this fund a few years ago, Mr. Christensen stated he is proud there now is a strong fund balance. In response to a question from Councilman Turner, Ms. Schober noted the pharmacy system was changed to secure bigger rebates and lower costs, saving $225,000. Hotel/Motel Tax Noting there have been many agencies supported by this fund, Mayor Sager stated at this time it is uncertain as to the totality of the production based on the current situation, but the City will move forward with the applications. He noted the funds available for distribution will depend upon the taxes derived from hotel/motel stays. There were no further questions or comments on this item. Human Resources Department Noting much of the money for this Department seems designated for updating job descriptions, Councilman Flynn asked if this is something that is on the radar. Mayor Sager stated this was a large part of the recently completed Compensation Study. Ms. Schober agreed, noting that this update was not completed at the time of the Compensation Study, but is part of it. She described what has been done and what remains to be completed for this portion. Information Technology There were no questions or comments on this item. Building & Zoning Mayor Sager stated it is interesting to note home sales for the first quarter are just a little bit behind last year. Mr. Napolitano stated the biggest change to this budget is the inclusion of a line item for the Neighborhood Improvement Program with a proposed budget of $185,000. He stated the expectation is that the City will get a $150,000 grant from the County with $35,000 needed from the City. In response to a question from Councilwoman Piersall regarding the status of this grant, Mr. Napolitano stated everything is on hold currently, opining the County does not know what the federal government will be doing. Mr. Stelford noted the County is required to disburse CDBG funds, opining Harvard and Woodstock are likely to receive funds for these programs. In response to a question from Councilwoman Piersall, Mr. Napolitano stated plans for application for Historic Tax Credits are still in place. Administrative Adjudication There were no questions or comments on this item. Economic Development Mr. Anderson talked about the initiatives planned for the coming year. Mayor Sager expressed appreciation to the Economic Development (ED) Department Staff for its quick turnaround to work with local businesses to move things forward during these times. Councilman Turner talked about the substantial adjustment that will be needed as a result of COVID-19. He commended the ED Staff for what they have done thus far. He opined the City will have to come up with a strategy on how to quickly react further, and how it targets and markets when it comes to how fund reserves are used, which he supports. He expressed hope the City will consider further investments in the near future. Mayor Sager stated the ED Department has done a find job responding in the short-term to assist in this challenging time, noting some business owners have spoken to him and are very pleased. He agreed as time progresses, the City will need to be prepared to do something additional, which will be a challenge. Councilman Flynn stated the City must be aware of what things actually cost, providing some suggestions on how to do this, including for booths at expos. A brief discussion ensued of what is needed for a booth during which it was suggested to explore partnering with other communities. Councilman Turner stated he is not supportive of joining with other communities, noting the need to push the Woodstock brand. Mr. Stelford stated Staff will continue to move the Woodstock brand forward in the most professional way to make the best possible presentation. In response to a question from Councilman Prindiville, Mr. Anderson provided more information on places and trade shows at which he would like to promote Woodstock. In response to questions from Councilwoman Lohmeyer, Mr. Anderson explained line item 515, which relates to trade show attendance. Noting his experience with trade shows, Councilman Flynn asked if Mr. Anderson feels this budget includes enough money to put out the message Woodstock wishes to put out. Mr. Anderson affirmed it generally does, welcoming the opportunity to have a conversation with the Councilman about this. He stated there is a specific market and show proposed, but noted all funds do not need to be spent on only these. Discussion followed of possible shows and presentation approaches. Mr. Stelford stated Staff will work to develop both a professional display, which will also provide flexibility. Mayor Sager asked Staff to take a look at this and if they feel more support is needed to communicate this back to Council. It was the consensus of the City Council that Mr. Anderson work with his department and then have a conversation with Mr. Stelford and Mr. Christensen to work on the budget. Revolving Loan Fund Noting there are seven loans currently outstanding, Mr. Anderson provided a brief synopsis on each. He noted another loan application was received today. There were no comments or questions on this item. Opera House Mr. Campbell stated there will be many changes due to COVID-19, which will have a dramatic impact on the budget. In response to a question from Councilwoman Lohmeyer, Mr. Stelford gave information on the incentive-based plan in place for Opera House Staff to treat it more like a business. He explained how it is incorporated within the Department’s budget and how it has been distributed. In response to a question from Mayor Sager, it was the consensus that this could be done in the July timeframe. Band/Café Mr. Christensen stated as the Café runs in conjunction with the Opera House, these budgets are being blended. Mayor Sager noted the change made to the E3 Liquor License, stating one of these licenses is for Stage Left, which will give the opportunity to look at the utilization of small bar carts, noting the many changes being made in theaters. He stated staff has looked at this and hopes to allow people to buy drinks from these carts and take them into the auditorium, stating a souvenir glass could be included in the purchase. Mr. Campbell opined it will be more efficient to blend the Café and Opera House Budgets. He stated a donation from a theater group is being used to purchase the bar carts, opining it will be good for business. In response to a question from Councilman Flynn, Mr. Campbell stated at this time the cups are being looked at for internal branding, not private sponsorship opportunities, noting that may be a possibility in the long term. In response to a question from Councilman Tebo, Mr. Campbell stated the Band Budget will also be combined with the Opera House and Café, explaining further how the line items will be identified and merged. Mr. Stelford stated the budgetary histories of the three entities will remain in the budget document for two years. Recreation Mr. Zinnen stated it is not yet known what will happen after April 30. Councilman Turner opined there are more things that can be done to get the assets of the Recreation Department and the Aquatic Center out to the public, not only in Woodstock, but other communities. He encouraged the Department to market to other communities, stating he would like to see the Recreation Department take the same approach as the Opera House, noting the Recreation facilities need increased revenue as they become older. Aquatic Center Recreation Center Special Recreation Fund (NISRA) There were no comments or questions on these items. Library Library Building Fund Library Debt Service Mr. Weber stated the Library is also waiting to see what happens with COVID-19 as it relates to its services. He stated the largest expense in the Library Building Fund is replacement of the roof, noting timing of the project will depend upon the bids. Police Wireless Alarm System Police Pension Chief Lieb stated the Police Department recognizes this will be a challenging year regarding the budget and is ready to work with the City Manager and City Council in managing this in any way it can. Mayor Sager noted the pension fund is well managed. He stated he is also glad to see many new officers. Chief Lieb stated the senior officers provide experience and the new officers provide energy resulting in great police work. General Fund – CIP Mr. Stelford noted the projects that are being recommended, opining there probably will be a few changes, because it is anticipated revenues in this fund will be negatively impacted. Mayor Sager noted Council has gone through the CIP list on more than one occasion. He stated this year the City is faced with a great deal of uncertainty, noting Staff has gone through and noted the priorities to be reduced if needed as a result of the current situation. He stated this is not a comprehensive list, but is a start, noting it now totals about $1 million. He asked if Council has any major concerns. In response to a question from Councilman Tebo, Mr. Stelford stated the City Administration will forward a Budget Ordinance for Council’s consideration that would incorporate funding for these items, but the Administration would not move the identified capital projects forward unless the City’s finances were performing much better than anticipated. He stated the deferred items would not automatically be moved into the next fiscal year, but rather would require reevaluation because it would depend on how deep any cuts may be required. He opined there could be multiple years that are financially difficult and the identified items would be put back into the CIP process to via for funding with the other projects. Mr. Christensen noted Staff would rework the items into the 10-year program for prioritization. Mayor Sager stated Council and Staff realizes these items are already a priority, but they must make realistic decisions in regards to the FY20/21 Budget in light of the current situation. He stated it is hoped they would be able to be part of the next year’s budget. In response to a question from Councilman Prindiville, Mr. Van Landuyt provided information on how the stormwater improvements were prioritized, noting the majority of funds allocated for the coming year are for the retention basin in Raintree Park. He also provided information on the work scheduled for Raintree Park with Mayor Sager noting this is a first step that will be built upon. Councilman Flynn opined the outdoor stage planned for Emricson Park should be larger. Community Events Mayor Sager noted much is up in the air concerning events, stating it is unknown what will be able to move forward. For that reason, he stated this discussion would not include specific events as everything is under evaluation. Paratransit There were no comments or questions concerning this item. Tax Increment Financing (TIF#1) There were no comments or questions concerning this item. Tax Increment Financing (TIF#2) Mr. Christensen stated the plan is still to move forward with the Old Courthouse renovations with architect Gary Anderson working on the drawings to be used in the application for Historic Tax Credits. Discussion followed of the businesses that submitted responses to the RFP and how the current situation could affect this project. Mayor Sager stated the City will go ahead and move forward with these businesses as plans continue to evolve. Mr. Christensen opined the earliest construction start date would be May 2021, with earliest occupancy of tenants in May 2022. Councilman Prindiville opined the City may come out of the current situation into a whole different world, expressing skepticism about thinking about this project in the same way as to whether this is the best use of the buildings. He opined how COVID-19 may impact the future ability to conduct business and what the right thing to do is. He also expressed skepticism that the City will be able to proceed as it has in the past. Councilman Tebo opined the appropriate approach would be to let the businesses decide whether they can proceed rather than assume they cannot. He opined the City should continue to believe things will be the same until told otherwise and proceed with these businesses. Mr. Christensen stated the City is moving forward under the Gary Anderson contract. He noted there are multiple plateaus where the project can be stopped, if necessary. Department of Public Works Administration Mr. Van Landuyt talked about the various positions in DPW Administration including the City Engineer, Assistant Director, and Office Manager. Mr. Stelford noted as a result of vacancies in these positions, Mr. Van Landuyt has delayed his retirement, thanking him. He provided information on the search for Mr. Van Landuyt’s replacement, noting it is very difficult to fill this position which also was reinforced by the recent Comp Study. Mayor Sager thanked Mr. Van Landuyt for his willingness to continue to work through this. Fleet Maintenance There were no comments or questions regarding this item. Streets Mayor Sager noted the City is putting a major investment into its streets. In response to a question from Mayor Sager, Mr. Van Landuyt stated at this time it is not thought COVID-19 will put the construction season behind. He stated the City would like to continue with Public Works’ programs as much as possible. Parks There were no comments or questions regarding this item. Motor Fuel Tax (MFT) There were no comments or questions regarding this item. Utility – Revenues There were no comments or questions regarding this item. Water Treatment There were no comments or questions regarding this item. Wastewater Treatment There were no comments or questions regarding this item. S&W Maintenance There were no comments or questions regarding this item. W&S Administration & Debt Service There were no comments or questions regarding this item. City Hall There were no comments or questions regarding this item. Environmental Management In response to a question from Mayor Sager, Mr. Christensen stated a report concerning the Bag Program will be provided to the City Council. In response to a question from Councilman Turner concerning Debt Service, Mr. Stelford provided information on what bonds will be retiring in the next three years. Mayor Sager noted Staff will provide a summary of this information S&W Maintenance In response to a question from Councilwoman Piersall, Mayor Sager stated the entire $600,000 originally designated for water main replacement is being deferred. Mr. Van Landuyt stated the cost for Washington Street will carry over into FY20/21. Mr. Stelford discussed what the deferred funds will be used for in greater detail. Discussion ensued of the deferral, the projects that will be deferred, and the projects that will be done. Mr. Van Landuyt stated $185,000 of the $600,000 will remain in the budget after the scheduled projects are finished. Councilwoman Piersall opined water main replacement and maintenance is more important than putting in a roundabout, with Mr. Christensen stating there are grant funds attached to the roundabout. Mayor Sager stated if the roundabout project does not proceed the City will forego $1.5 million in grants. In response to Councilman Prindiville’s questions, Mr. Stelford explained there will be an interfund loan between funds that will not change the expenditures. Councilwoman Prindiville opined the Water & Sewer infrastructure should not be neglected. Councilman Flynn echoed Councilwoman Piersall’s comments, suggesting tapping into reserves for the water main project. Mr. Stelford stated more detailed information will come forward at the Street Workshop when discussing years two through five and noting the challenge that a number of utility upgrades and replacements will be needed. He opined many of Council’s concerns will be addressed at the workshop. Mayor Sager discussed how the City’s planned investment in Streets will also affect the W&S infrastructure and how the money going for the roundabout also includes some of the underlying infrastructure. Councilman Flynn asked questions concerning line item 703 asking about drainage from the roundabout to Raintree Park, specifically if the roundabout is done and not Raintree Park will there be problems with drainage. Mr. Van Landuyt responded there will not. SUMMARY Mayor Sager thanked Mr. Stelford and City Staff for their efforts in formulating the FY20/21 Budget, as well as everything they are doing to provide the best possible services to the public. He expressed gratitude to Staff for being flexible to work through these challenging times. ADJOURN Motion by J. Prindiville, second by G. Tebo, to adjourn this Special Budget Workshop of the Woodstock City Council to the Special Streets Workshop at 3:00 PM on Monday, April 20, 2020 in the Council Chambers of Woodstock City Hall. Ayes: D. Flynn, L. Lohmeyer, W. Piersall, J. Prindiville, G. Tebo, M. Turner, and Mayor B. Sager. Nays: none. Abstentions: none. Absentees: none. Motion carried. The meeting was adjourned at 4:12 PM. Respectfully submitted, Cindy Smiley City Clerk