Special Meeting and Budget Workshop
Mayor Ottens called the meeting to order at 8:00 a.m. and directed the Deputy Clerk to call the roll. On roll call, Aldermen Paul Banker, Barb Mask, Sue VanKampen, Dan Nederhoff, Mike VanZuiden, and Margaret Crosthwaite were present. Aldermen Field and King arrived later during the meeting. Also in attendance were City Administrator Clark, Chief Neblung, Deputy Clerk Garibay, and Sergeant Hamilton.
Pledge of allegiance was recited.
BUDGET WORKSHOP DISCUSSION
BASIC INFORMATION ON GENERAL FUND
- City Administrator Clark opened the meeting with the first item on the agenda for discussion – Treasurer’s Report and Budget to Actual. He explained what was in the General Fund and how it fluctuates each month depending on what the City has for expenses. It currently was sitting at $519,000 at the end of November 2020 which is slowly on the incline from previous months. He did remind the council that per the Auditors, it is recommended that the City has enough in the General Fund to support the City expenses for a minimum of six months. Ideally that Fund should be sitting at about $900, 000 - $1,000,000.00. Of course, the only way to get to that amount is to increase revenues and decrease expenditures.
Administrator Clark briefly went through the City’s Budget to Actual and explained that the City was tracking in-line, even with the decrease in revenues that have been affected by the Covid-19 Pandemic, which is a plus.
- Graphs have been provided to show tracking of revenues and expenditures for the past five years - in comparison. Department expenditures have also been listed, under a five-year comparison. During the current fiscal year 2020/2021 the following percentages make up the total expenditures: Administration @ 15%, Parks @ 7%, Tourism @ 3%, Streets @ 23% and Police @ 52%. These have been trending at approximately the same percentages for the past several years. Revenues are basically supported from Tax Bill Allocations on property taxes. The breakdown on the allocations on an average resident tax bill is: Fulton Township Roads @1.5%, School @ 54.7%, County @ 13.6%, City of Fulton @12.7%, Fulton Fire @ 5.2%, Sauk Valley @ 5.3%, Fulton Township%, Fulton Library @ 2.2 % and Fulton Flood Protection @ 1.7%.
PRESENTATION OF OPTIONS – POLICE DEPARTMENT
- 1 Chief, 2 Sergeants, 3 full-time Officers, 1 SRO, 1 Administrative Assistant, 1 new Tahoe, 40K in Overtime pay. (5,502) 7 MAN DEPARMENT
- 1 Chief, 2 Sergeants, 3 full-time Officers, 1 SRO, 1 Administrative Assistant, 1 new Tahoe, Body Cameras, 40K in Overtime pay. (17,142) 7 MAN DEPARTMENT
- 1 Chief, 2 Sergeants, 3 full-time Officers, 1 SRO, 1 Administrative Assistant, 3 new Tahoe’s, Body Cameras, 40K in Overtime pay. (Police Department will cut $6000 in Vehicle maintenance due to new vehicles in fleet, $2000 in fuel cost and $2000 in legal fees). (23,344) 7 MAN DEPARTMENT
- 1 Chief, 2 Sergeants, 2 full-time Officers, 1 SRO, 1 Administrative Assistant, 3 new Tahoe’s, Body Cameras, 50K in Overtime Pay. (39,696) 6 MAN DEPARTMENT (Staffing is the main difference here).
- 1 Chief, 2 Sergeants, 4 full-time Officers, 1 SRO, 1 Administrative Assistant, 3 new Tahoe’s, Body Cameras, 40K in Overtime Pay. (96,444) 8 MAN DEPARTMENT
COSTS FOR BODY CAMERAS WILL BE $11,640 PER YEAR FOR 5 YEARS.
COST PER TAHOE WILL BE $50,806 FULLY EQUIPPED. (lowest financing option came from Community State Bank in Fulton @ 1.45% for 48 months-which per Alderman Nederhoff said that was an excellent rate)
Options presented would have to be the decision of the Council. Further discussion and possible tentative decision could be made at the next budget session to held on January 30, 2021 at 8 a.m.
Alderman VanZuiden asked what the fleet looked like currently and what would it look like if we purchased the three new vehicles.
Current Fleet: 1 Tahoe, 3 Dodge Chargers, 1 Durango, 1 Ford Explorer, 1 Ford F-150.
Possible Fleet: 1 2019 Tahoe, 3 New Tahoe’s, 1 Durango
Chief Neblung said ultimately the department would like to sell the Ford Explorer to the Clinton Police Department for the price of $30,000 (which is currently being discussed between the 2 departments), and along with the $20, 000 in the Canine Fund would support the price of one new Tahoe #1.
Tahoe #2 – Would be supported by the sale of the F-150 and the trade in values of the 3 Dodge Chargers. Remaining balance would have to be financed.
Tahoe #3 – Financed.
City Administrator Clark iterated that keep in mind, all other departments have eliminated Capitol expenses, and be aware that City Hall/Police Department will eventually have to have a new heating and air unit. Which the most recent quoted came in at $43,000.
Alderman Mask asked the question, if we supported the purchase of the vehicles, what would take away from another department to cover the overage. Administrator Clark said that this is the problem and why the General Fund has taken such a direct hit. It will be something that you will have to decide as a council. We can only present the options. We do have to establish our wants and needs in moving forward and staffing levels must be determined. Will the public look at it as, what do we want - new Tahoe’s or an extra Police Officer on the street?
We must keep in mind; the full impact of the COVID-19 Pandemic has not truly surfaced yet in determining what will revenues look like towards the end of the fiscal year.
Administrator Clark wanted everyone to look at the information section at the back of the budget packet. It has great information on Use Tax, Personal Property Taxes, Consumer Price Index, Cost of the City’s Tort Insurance and the current Tax Levy. All these have important factors concerning our budget.
City Administrator Clark said that he had contacted Dan Dolan on the property sale extension of the 18.735 acres in the Industrial Park, and Mr. Dolan asked if he could continue as he has in the past, which would be a six-month contract with no stipulations or earnest monies involved. The Mayor would like it to continue as is. No Alderman commented.
Updating the downtown business grants offered by DCEO. Krumpet’s is in the second stage, but DCEO has decided that they need new updated budgets from the business. Great River Gymnastics has been moved along and should hear soon whether they will be approved. Denny O’s has been denied, but no reason has been passed on to us, why. And Johnnie’s paperwork had appeared to be lost but DCEO has recently said they have found it.
Geronimo’s contract for purchase of land for the Solar tract is coming due March 26th of this year. We will be in contact with them.
Farmland crop rental. We currently have 55.8 acres available. City Administrator will get in touch with Alderman Nederhoff to discuss current rate of rental. The current contract come up for renewal in March of this year. Once a price is established for the rental ground, City Administrator Clark will get in touch with Mr. Jim Wherry who currently is renting the land.
Last business discussion: what is the Council decision to move forward on the sale of the Ford Explorer to the Clinton Police Department and will be able to use the funds in the Canine Fund to support the purchase of one new Tahoe. Alderman Mask says she is in favor of selling the Explorer. The Council says they will support the purchase of the one Tahoe, with a head nod of approval, if the canine funds can be used for a purchase. Mayor Ottens said tell Clinton if they want to buy it …. Go ahead. At the next meeting we will vote for the use of the Canine Funds to be applied to the purchase of a new Tahoe.
It is the consensus of the Council to hold the next budget meeting on January 30, 2021 at 8:00 a.m.
Mayor Ottens asked to take a short break and then we will proceed to the closed session portion of the meeting.
Mayor Ottens asked to open closed session portion of the meeting, Alderman Mask motioned, seconded by Alderman Crosthwaite at 9:07 a.m.
Exited Closed Session at 9:18 a.m.
With no Further discussion, the budget workshop closed with Alderman VanKampen motioning. Alderman King, seconded. With voice roll call - all in agreement. The meeting closed at 9:19 a.m.
Tammy L Garibay
Deputy Clerk – City of Fulton