The Rock Island City Council met in reconvened session on Saturday, February 24 at 8:00 a.m. in the Personnel Conference Room of Rock Island City Hall. Present were Mayor Mark W. Schwiebert, presiding, and Aldermen Terry M. A. Brooks I, David A. Conroy, Dennis E. Pauley, Daniel Rockwell, Margie-Mejia-Caraballo, Joy Murphy, and Charles O. Austin III. Staff present included City Manager John C. Phillips, Finance Director Bill Scott, and Assistant to the Finance Director Niki Fallon. Other staff entered the room at various times of the morning pertinent to their presentations.

BUDGET OVERVIEW

Finance Director Bill Scott opened the discussion and provided the City Council with an overview of the proposed budget for fiscal year 2007-2008. Mr. Scott explained that the proposed 2007/2008 budget incorporates the Five Year Capital Improvement Program in which $10,408,841.00 is budgeted this fiscal year for capital, infrastructure maintenance, and operations projects, and a total of $43,513,118.00 is planned for the next five years. The 2007/2008 Budget also includes the Community Development Block Grant Program, City Funds and expenditures totaling $4,700.000.00 from riverboat gaming revenues.

Mr. Scott stated that the General Fund finances many of the basic services provided by the City including police, fire protection, street maintenance, as well support services of the Finance and Personnel Departments. The 2007/2008 General Fund is budgeted at $30,287,641.00. This is a 9.9% increase from fiscal year 2007. Personnel costs increased by 4%, supplies are up $530,788.00, services are up by $1,099,829.00 and capital is up by $54,085.00.

Mr. Scott noted that Personnel costs are approximately 66% of General Fund expenditures, supplies are 5% of the General Fund expenditures, and services are 24% of the General Fund Budget, which increased by 18%. Mr. Scott affirmed that Transfers to other funds total $205,358.00. $64.000.00 is transferred to the Downtown TIF Fund for the TIF share of the City’s sales tax increment. $50,000.00 is transferred to the Martin Luther King Center to offset the continued decrease in Federal Block Grant Funds. $58,058.00 is transferred to the Park Fund for non-park landscaping maintenance, and $33,500.00 is transferred to the Engineering Fund.

Mr. Scott explained that the Total Budget includes the General Fund, Enterprise Funds, Internal Service Funds and Restricted Funds. The 2007/2008 Budget after eliminations is $76,994.109.00. This is a 17% increase from the 2006/2007 Budget. The greatest increases are services at 39% and Capital at 30%.

Mr. Scott also noted that on March 5, 2007 there would be a Public Hearing on the Budget Ordinance, and on March 12, 2007 the Budget will go before the City Council for adoption.

After Finance Director Bill Scott finished the overview of the 2007/2008 Budget, each scheduled department presented their Budget to the City Council.

MARTIN LTHER KUNG CENTER

Martin Luther King Center Director Jerry Jones Stated to the Council, the King Center will see an overall decrease of 13% for fiscal year 2008. Personnel costs will increase by 6% due to the benefit and merit increases. Services will decrease by 30%, as capital improvements are not scheduled for this budget year. Supplies will see a small decrease of 4%.

Mr. Jones explained that the King Center continues to seek diversification in its funding streams to ensure its financial viability. The King Center can list 15 sources of income for fiscal year 2008 with 12 of those being grants. The City of Rock Island has made operational costs a priority, and the King Center is asking for a $50,000.00 transfer from the General Fund to address operations. Mr. Jones also indicated that the Board would be charged with creating a foundation to raise funding for programming. Mr. Jones concluded that with these efforts and the City’s commitment to expansion are crucial to the King Centers mounting a successful campaign. These efforts are a long-term goal in dealing with rising costs and being able to provide opportunities to a diverse population in the community through a variety of programs and services.

POLICE

Chief John Wright stated that there is no change in the level of staffing for FY 2007/2008. The D.A.R.E. program was discontinued in 2005/2006 and replaced with the School Resource Officer Program in which an officer is assigned to work with the grade schools, Junior High schools, and Thurgood Marshall Learning Center. Also, during the 2006/2007 school year, the Police and Fire Departments joined together to teach a semester long public safety course at the Rock Island High School called “Lights and Sirens”.

Chief Wright sighted that there will be several Grant Funding changes seen in this fiscal year 2007/2008. The funding level for the Justice Assistance Grant was reduced in fiscal year 2006/2007 by $ 13,700.00 when compared to fiscal year 2005/2006, and funding levels for the fiscal year 2007/2008 for this grant are unknown .The Speed Enforcement Grant which is received from the Illinois Department of Transportation replaced the Image Grant, but should see comparable funding. In fiscal year 2006/2007, the Police Department was awarded COPS Technology Program Grant in the amount of $47, 420.00. These funds have been utilized in fiscal year 2006/2007, and will continue to be utilized in fiscal year 2007/2008 to expand the use of mobile data technology. Chief Wright noted that no other significant changes are anticipated in other Grants awarded to the Police Department.

Chief Wright stated that Supplies have increased due to the rise in ammunition costs, the purchase of DVD video equipment for training, the purchase of evidence drying cabinet and related filters for improved handling of evidence, the purchase of digital server software for the in-car digital video systems for the patrol cars using DUI Fund revenue, and the purchase of GPS hardware under the COPS Technology Program Grant.

Chief Wright mentioned that Capital has been reduced this budget year, as there are no projects in this fiscal year utilizing Gaming Funds. Also, State Drug expenditures have been reduced due to the elimination of the cost of the Gang Task Force Secretary position, and moving the expense of the Narcotics/ Vice Division vehicles to Federal Drug. In the area of Federal Drug, forfeiture revenue was received in fiscal year 2006/2007 and is available for use in this year’s Budget. This revenue will be used to purchase Body Wire equipment and cover the expense of the rental of vehicles used by Narcotics/Vice Division.

Chief Wright stated that new Court Supervision Legislation went into effect January 1, 2007 requiring the collection of additional court fines that are then distributed to the arresting agency for the purchase and maintenance of Police vehicles. This new revenue will be used to cover part of the cost of the automotive expense for the Patrol Division. And, Police Contributions have increased due to the anticipated increase in spending in the Shop With A Cop Program, and the purchase of bicycle helmets to be donated to young riders.

Chief Wright concluded that services has increased due to a $54,556.00 increase in worker comp insurance, a $2,281.00 increase in unemployment insurance, and a $7,008.00 increase in general liability insurance. All other areas in this cost center have decreased.

COMMUNITY AND ENONOMIC DEVELOPMENT

Community and Economic Development Director Greg Champagne addressed the Council and provided information regarding their Department’s Budget. Mr. Champagne stated that the proposed fiscal year 2007/2008 Budget shows a 10% increase over the 2006/2007 budget. The increase results primarily from the allocation of gaming funds. Projects funded with gaming dollars include; non-TIF Façade Improvement Program of $100,000.00, Sales and Property Tax Rebates of $185,000.00 Columbia Park Plan implementation of $215,000.00, Community Marketing of $120,000.00, Non-City Agency support of $173,800.00, Demolition of $250,000.00 Campus Town project of $10,000.00, KJWW Project of $105,000.00 Special Economic Development of $200,000.00, and social service agency support of $50,000.00.

Mr. Champagne offered that another significant source of support comes from Tax Increment Finance Funds (TIF). Various Major TIF supported activities include Downtown and 11^th Street Façade programs of $285,000.00. New/Old Chicago Implementation of $106,000.00, Armory/Park RiverVision plan implementation of $465,000.00 and Downtown Strategy Plan implantation of $150,000.00.

Mr. Champagne explained that the Department Staff would be responsible for administering over $3 million in Grant Funds. Various Grant Funds include; USEPA Brownfields Assessment Grant of $200,000, US Scenic Byways Grant of $750,000.00, US Housing and Urban Development Lead Based Paint Grant of $1.9 million, a Tyson Corporation Grant for environmental remediation at the Botanical Center Children’s Garden site of $50,000.00.

Mr. Champagne stated that in the Personnel category this reflects an increase due to salaries and benefits with one unfilled position eliminated. There is a 52% reduction in supplies due to the reallocation of $30,000.00 for construction of bases on which to place sculptures pieces for display in the district. These funds remain in the budget, but have been shifted to a different category of expenditure. Services has a 110% increase due primarily to a projected $400,000.00 expenditure for contract inspection services related to the Casino Rock Island. Programs shows an increase of 25% due to the McKesson property, redevelopment budgeted at $700,000.00, implementation of the Downtown Strategic Plan objectives budgeted at $150,000.00 and funding allocated for arts related activities or projects budget at $100,000.00.

Mr. Champagne concluded that the Capital category includes $250,000.00 for the Ridge- wood Road Business Park infrastructure, $260,000.00 for gateway projects, $40,000.00 for lighting of the Blackhawk mural, $30,000.00 for construction of a wetland, $30,000.00 for completion of the Sylvan Slough Natural Area Project, and $15,000.00 to support renovation of the Centennial Bridge Office.

LIBRARY

Library Director Ava Ketter presented the Library’s fiscal year 2007/2008 proposed Budget. Ms. Ketter stated that in fiscal year 2006/2007 two service floors of the Main Library were renovated as the final stage of the Vision 2000 Capital Program. Other programs were expanded, and funding was provided by grants. Grants funded equipment to digitize archival material. The Milan-Blackhawk Area Library District funded replacement of all public computers at the Southwest Branch.

Ms. Ketter affirmed that for the 2007/2008 Budget, no changes in staffing levels or hours are anticipated. Minimal overtime was budgeted to cover emergencies. Increases reflect salary amounts negotiated through the UAW Labor Contract and required for the increase in minimum wage. Also, $20,000.00 was budgeted under Contingency for Capital Reserve. Ms. Ketter mentioned that approximately $10,000.00 was budgeted to create a public computer training lab in the Community Room of the Downtown Library. This amount will provide laptops and a storing/charging system so the room may be used for classroom type instruction. The HVAC service contract was eliminated due to the installation of a new Boiler at the Main Library. This reflects a cost savings of $10,000.00.

Ms. Ketter affirmed that $2.500.00 was budgeted to replace public access computers, keyboards and mice. $1,500.00 was allocated to create updated service area maps. A 5% increase was budgeted for Library materials to help offset inflation costs and increased public demand.

Ms. Ketter concluded that there are slight increases in the proposed Budget for re-striping the parking lots, replacing dead plants/trees, and to improve the landscape appearance at all three Branches. Also, the replacement of the shingles on the peaked roof at the Main Library is funded through a transfer from Gaming.

FINANCE

Finance Director Bill Scott presented his Department’s Budget for fiscal year 2007/2008. Mr. Scott stated that this year, the Finance Department would focus on customer service. The addition of a bi-lingual Customer Service Representative has proven to be an asset to the Finance Department as well as to the City of Rock Island. Also, the Finance Department will focus on Succession Planning due to the number of eligible retirement age employees. Mr. Scott noted that no staffing changes are proposed for this fiscal year.

Mr. Scott sighted that workloads have increased this year due to the annual registration and inspection of fees from the Rental Inspection Program, Sunset Marina fees, special assessments, and various other billings continue to increase. Mr. Scott affirmed that the Finance Department would continue to increase the volume of electronic transmissions of financial information to enhance services and improve efficiency.

Mr. Scott concluded that Personnel costs show no significant increases, as staffing levels remain the same. Supplies increase is based on necessity and experience. Services increase is due to the hiring of a banking services consultant at a cost of $20,000.00. Transfers include a $50,000.00 transfer to the Martin Luther King Center, and a $58,058.00 transfer to the Park Department. The contingency is set by City Financial Policy at 1% of budgeted expenditures, and is based on a total General Fund Budget in excess of $2.7 million.

INFORMATION TECHNOLOGY

Information Technology Services Department Director Claire Gordon addressed the City Council and provided information regarding the fiscal year 2007/2008 Budget. Ms. Gordon stated that expenditures for the Information Technology Department have decreased by 23%. In the category of Personnel, there is an increase of 2%, which is due to salaries and benefits. The supply category shows a 51% decrease due to the completion of the MS Office Upgrade of $70,000.00; the completion of the MDT’s of $60,000.00, and the completion of the District Video Surveillance/Wi-Fi Project of $150,000.00. Additionally there is a decrease of $500.00 for small office equipment, a decrease of $6,600.00 in funding for small printer replacement being budgeted in Capital, a decrease of $13,000.00 in Communication Equipment funding, and the funding of $12,000.00 for the hardware and software implementation of the eDoc module for the Financial System Software.

Ms. Gordon affirmed that there was an increase of $9,621.00 in the services category. This increase is attributed to lower Workman’s Comp and liability insurance premiums of $1,959.00, the decrease in GIS Software Maintenance costs of $3,000.00, the increase of professional services costs of $4,580.00, and the funding of $10,000.00 for the Software Steering Committee Research and Evaluation.

Ms. Gordon explained that the Capital category shows an 82% decrease. This decrease is due to the funding of the Communications Infrastructure Phase III, which has been completed, and Phase IV of this project has been put on hold to work on the QC-ICC Project, which will allow the City to take advantage of the efforts and utilize the findings. A voice over IP (VOIP) Pilot is being funded in the amount of $25,000.00, which results in a decrease of $225,000.00 in Communications Equipment. Additionally, there is an increase of $9,800.00 for printer/copier replacement.

Ms. Gordon concluded that the transfer category shows a 9% decrease. This decrease is attributed to the completion of Phase III of the Communications Infrastructure Project, the funding of the Voice Over IP (VOIP) Pilot, the funding for the Software Steering Committee Research and Evaluation, and the change in funding for the Equipment Replacement for being purchased from fund 301 to being transferred and funded in the General Fund.

RECESS

Following discussion, a motion made by Alderman Austin and seconded by Alderman Rockwell to recess to Saturday, March 3 at 8:00 a.m. CARRIED on a Voice vote.

The meeting was recessed at 12:15 p.m.

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Aleisha L. Patchin, City Clerk