The Rock Island City Council met in reconvened session on Saturday, February 28, 2009 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, Margie Mejia-Caraballo, Joy Murphy and Charles O. Austin III. Staff present included City Manager John C. Phillips, Finance Director Bill Scott and Budget Coordinator Don Reichert. Other staff entered the room at various times of the morning pertinent to their presentations. Alderman Stephen L. Tollenaer was absent.

BUDGET OVERVIEW

Finance Director Bill Scott opened the discussion and provided the City Council with an overview of the proposed budget for fiscal year 2009-2010.

Mr. Scott stated that a Public Hearing on the budget is scheduled for March 16, 2009 with the adoption of the budget on March 23, 2009.

Mr. Scott reviewed the Table of Contents and made reference to The Capital Improvement Plan and the Manager’s Memo. Mr. Scott noted the Personnel changes in the budget, which include; the elimination of the IT Director position in the Information Technology Services Department; one less position in the Community and Economic Development Department, which is the Lead Grant Administrator; the King Center is down one (1) position and Public Works is down one (1) position. Mr. Scott offered that Parks has a little bit of a decrease and the Library has a small increase. It was also noted that there is an increase in the City Clerk area due to a shift from contract to payroll.

Mr. Scott stated that in the General Fund, 69% of General Fund expenditures are Personnel related. Mr. Scott stated that salaries are up 3.1%; health is up 10% and pensions are up 11%. Mr. Scott offered that the major increase in Supplies, which is 5% of the total General Fund, is due to the cost of road salt. Mr. Scott added that Services are 22% of the General Fund. Mr. Scott noted that there is an addition of $140,000.00 in the General Fund this year due to the Hotel/Motel Tax regarding the addition of the hotel to the new casino. Mr. Scott stated that the City plans to meet a target balance, which is a 90 day balance at the end of March this year; it took a five (5) year process to go from a 60 day balance to a 90 day balance. Mr. Scott explained that when bonds are sold that reflects on good management practices of a city and in effect, adds to a higher bond rating.

Mr. Scott made reference to page 11 of the budget and stated that the charts show a breakdown of revenues in the total budget. Mr. Scott added that the first chart shows where the money comes from. It was noted that Property Tax is 14% of the total revenue. Mr. Scott offered that the Property Tax Levy this year increased by $309, 875.00 over last year. It was noted that the levy for General Fund operations was down approximately $72,000.00. The levy for Police and Fire pensions increased $367,000.00 and the levy for the Library and Parks did not change. Mr. Scott stated that Local and State taxes make up 22% of the total in which the Local taxes are down approximately 8%. Mr. Scott added that State taxes are up approximately 20%. There is an increase in the Income Tax at 2.6%. Motor Fuel Tax as Mr. Scott noted, is down $112,000.00, Replacement Tax is down $13,500.00 and there is an increase in Gaming. Mr. Scott offered that he thought the City was in pretty good shape.

Budget Coordinator Don Reichert stated that in regards to the State Income Tax and compared to what the State is saying, the City is probably approximately $32,000.00 over budget on what will be actually received next year. The State rates show that the Use Tax could be increased by $25,795.00 in regards to what the City has recommended. Mr. Reichert offered that these two taxes will probably offset each other. Mr. Reichert added that a possible change that would be made would be to reduce the Income Tax and increase the Use Tax. Mr. Reichert noted that regarding the Motor Fuel Tax, the City is on target as to what the State rates show. Mr. Reichert offered that the Replacement Tax is an issue. It was noted that the City is projecting a 13.5% decrease for next year, and the State is affirming 13.7%. Mr. Reichert offered that in the next several weeks more would be known regarding this issue.

Council discussed taxes in relation to Sales, Income, Replacement and Use Taxes.

Mr. Scott then discussed page 12 of the budget on where the money is being spent. Mr. Scott offered that 38% of the total budget is in Personnel; costs are up 9.2%. Mr. Scott offered that salaries and wages are up $809,000.00; health is up $292,000.00 and pensions are $440,000.00. Mr. Scott stated that Supplies are 5% of the General Fund expenditures and are up 10 ½% and fuel is down 40%. Mr. Scott stated that Services are 18% of the total budget and are down by 3.7 million dollars. Mr. Scott offered that Capital is 18% of the budget and those major items include; the King Center building expansion, Armory Park, Long Term Control Plan and the RIFAC expansion.

Council discussed various items in the budget overview in regards to revenues, expenditures, transfers of funds related to major projects and projections related the next year’s fiscal budget.

After Mr. Scott finished the overview of the 2009-2010 Budget, each scheduled department presented their budget to Council.

MARTIN LUTHER KING CENTER

Martin Luther King Center Director Jerry Jones stated to Council that the King Center will see expenses increase 268% for fiscal year 2010. The majority of the increase will be due to the scheduled beginning of construction of the expansion and renovation of the Martin Luther King Center. Personnel costs will decrease by 5% due to the reduction of one (1) full time employee. Mr. Jones added that Supplies will decrease by 25% as a one-time expenditure in 2009 will not occur in 2010; Services will increase by 42% due to the renovation and the Other Services will increase 24% in an effort to subcontract afterschool services.

Mr. Jones stated that the King Center is looking forward to the expansion. It was noted that the final design will be completed in May. The Construction Manager has been hired and it is expected to have three (3) to four (4) cost estimates during this process of design. Mr. Jones offered that the expanded facility will allow the King Center to accommodate over 200 youth in the youth spaces and over 500 in the community room.

Mr. Jones stated that the capital campaign is going very well. Mr. Jones offered that other major events for the King Center include; the purchasing of two (2) vans in the coming year with grant funds; and the possibility of adding another afterschool program site in the coming year depending on some grant funding that the King Center will apply for.

Mr. Jones offered that the King Center will continue to maintain longtime and new partnerships that bolster services. In the past year, the King Center has engaged Arrowhead Ranch and Community Health Care to provide services in the facility.

Mr. Jones explained that the King Center continues to seek diversification in its funding streams to ensure its financial viability. Mr. Jones pointed out that this year, the King Center has another application in to United Way and the King Center is reapplying for grants through the Illinois Department of Human Services. Mr. Jones offered that the King Center will continue to look towards local, state and federal funding to help with the Center’s programs. Mr. Jones added that Administrative costs will increase by 465% mainly due to the expansion and renovation of the King Center.

Council discussed the expansion and renovation of the King Center as it relates to issues regarding time tables for the expansion in relation to conflicting with youth programs and other various program sites and community programming in general.

POLICE

Chief John Wright along with Captain Wayne Sharer and Captain Scott Harris addressed the Council and presented the fiscal year 2009-2010 Police Budget. Chief Wright stated that the reorganization of the Police Department has gone fairly well in this last fiscal year. This major change included consolidating the Criminal Investigation Division and the Patrol Division under the command of one Captain. Chief Wright pointed out that another change included completing the consolidated CAD efforts with the Illinois Law Enforcement Agencies. All the data bases for the dispatch records were combined throughout the Illinois Quad Cities into one CAD system. This makes it easier to share information with the neighboring Illinois agencies. Chief Wright offered that the former will be an added benefit for saving funds for the future when the Police Department begins enhancing the public 911 system to include Automated Vehicle Locaters. (AVL)

Chief Wright stated that in fiscal year 2008-2009, the Rock Island Housing Officer program received national recognition from the National Association of Housing and Redevelopment Officials for the City's innovative community policing efforts. Chief Wright stated that Liaison Officer Di Robinson is doing a great job with the Rock Island Housing Authority. It was also noted that Elderly Services Officer Jeff Ronk received the Rock Island City Employee of the Year Award for 2008 and he was also recognized by the Community Caring Conference as the Law Enforcement Officer of the Year.

Chief Wright indicated that by comparing the year 2008 to 2007, crime statistics were down 3% and violent crime was also down 3%. Also, in 2009 compared to 2008, there was an overall drop in crime of .5%.

Chief Wright indicated that the overall budget is approximately 12 million dollars. This is a 5% increase from the 2008/2009 budget. Chief Wright pointed out that the Staffing level remains the same with 112 employees. However, the budget includes the change in the Police Dispatch Supervisor position. This position will become a civilian position. Chief Wright noted that this change will be a major cost savings for the Department and the City. This change will be through the act of attrition. Chief Wright indicated that the arrangement with the Parks Department will allow for the continued employment of one of the Officers for White Water Junction. Chief Wright stated that Personnel costs have increased 5% due to pay raises. It was noted that there is a 19% decrease in Supplies due to the near completion of the In-Car video camera project in fiscal year 2008/2009, which should reach completion in April of this year. Chief Wright added that Services has increased mainly due to radio equipment maintenance, which is no longer under warranty. Chief Wright stated that there is a 6% increase in the General Fund due to increases in Personnel costs. There is also a 9% increase in the State Drug Fund.

Chief Wright offered that expenditures in the U.S. Justice Fund have decreased by 74% due to a decrease in the Justice Assistance Grant funding. Chief Wright noted that the Court Supervision Fund was incorrect; it had not been updated; this will eventually show a $4,000.00 decrease.

Captain Wayne Sharer stated that there will be an increase in revenue next year of 1.8%.

Captain Sharer stated that the funding level for the Justice Assistance Grant was reduced by the Federal Government this 2009/2010 fiscal year. In fiscal year 2008/2009, the Police Department received $45,866.00 and it has been reduced to $15,258.00. The Gang Task Force overtime reimbursement is up $5,500.00. Captain Sharer stated that the Code Hearing fees, which are CORA violations and other City Ordinance violations is projected to be up over $30,000.00. Special Police Services is up $14,000.00, which is partly due to the school district funding the School Resource Officer at $30,000.00. Captain Sharer stated that the rest of the increase is due to salary increases.

Chief Wright and Council then discussed several new projects including the purchasing and installation of Automatic Vehicle Locators (AVL) in all patrol and Detective Division vehicles, crime analysis, mapping and tracking software, funding for an Automated Fingerprint Identification System (AFIS) and funding for a regional Firearms Automated Training System.

COMMUNITY AND ECONOMIC DEVELOPMENT

Community and Economic Development Director Greg Champagne accompanied by Planning and Redevelopment Administrator Alan Carmen and Chief Building Official Tom Ayers addressed Council and presented their department's 2009-2010 Budget.

Mr. Champagne stated that the biggest change in the budget this year is the result of the completion of the Lead Based Grant program. Mr. Champagne noted that it was a 1.9 million dollar grant that was received. Mr. Champagne noted that there was a grant funded Lead Grant Manager position that will not be represented in the coming year.

Mr. Champagne stated that the largest project in the works is the Armory Park project. It was noted that staff is working to get the contract ready for April for the construction of the Park.

Council discussed the first phase (demolition) of Armory Park as it relates to timing, communication and the Corps of Engineers.

Mr. Champagne noted that another major area of activity in the Community and Economic Development Department is with housing and neighborhoods. Mr. Champagne indicated that all of the programs and activities add up to approximately 2.5 million dollars. Mr. Champagne mentioned the Stimulus Package and stated that there was a billion dollars added to the Community Development Block Grant Program when that legislation was signed by the President. It was noted that the City may receive approximately $300,000.00. Mr. Champagne offered that the department is looking towards ways to use those funds.

Mr. Champagne stated that the third major area of expenditures in the budget is Infrastructure at approximately 1.7 million dollars. It was noted that 1.2 million dollars of that money is for the Downtown 1st Avenue Sewer project, which has not been held up by the Corps of Engineers and is moving forward. Mr. Champagne stated that the final area of expenditures is Business Support Services, which is set at approximately one million dollars in the budget. Mr. Champagne noted that the Business Support Services include programs such as the Commercial Industrial Revolving Loan Fund (CIRLF) and the Façade Improvement Program.

Mr. Champagne stated that as in previous years, the City will partner with the various organizations that support the City’s Community and Economic Development mission. Mr. Champagne stated that the City has been working with some of the agencies for years. Mr. Champagne offered that there are three (3) agencies that staff will be recommending for an increase in support. The agencies include; The Quad Cities Convention and Visitors Bureau, which is funded at $30,000.00, will be recommended to receive an allocation of $70,000.00; the Community Caring Conference, which is funded at $10,000.00, will be provided with an increase to $18,000.00; and Keep Rock Island Beautiful will be provided with an increase from $15,000.00 to $17,500.00. Mr. Champagne offered that a fourth recommendation will be a one-time allocation of $50,000.00 to the Quad City Botanical Center to support their facility.

Council discussed various projects in the Community and Economic Development Department, various recommendations regarding the support for partner organizations, the Rental Inspection Program as it relates to various software upgrades and inspections in general.

LIBRARY

Library Director Ava Ketter along with Assistant Library Director Amy Penry presented the Library’s fiscal year 2009-2010 proposed Budget.

Ms. Ketter stated that construction was completed on the south entrance canopy project at the Main Library. It was noted that the aging chiller system at the Main Library will be replaced in early spring of this year. Ms. Ketter offered that the Library’s budget was cut by $65,500.00 to help offset unexpected demands on the City’s General Fund. It was noted that cost saving measures reduced the Library’s budget by 11%.

Ms. Ketter offered that in the area of Personnel, the supervision of Reference and Technical services was divided through a promotion. A clerical position was increased by eight (8) hours and an additional part-time (minimum wage) position was added to handle processing and shelving. Ms. Ketter indicated that a contract for cataloging and processing was canceled in 2004. It was noted that to date, there has been a savings of $237,000.00. Ms. Ketter stated that all of the work was brought in-house with no additional staff. Ms. Ketter mentioned that the cost of the reorganization is estimated at $14, 660.00. Ms. Ketter stated that Supply costs were reduced sharply in all cost centers and Services had already been cut, but were reduced further. It was noted that the Other category consists of library materials and there is a slight increase of 1% to help meet increased patron demand. Ms. Ketter indicated that the only Capital expenditure is $18,000.00, which is funded by the Library Foundation to replace the public computer time management system. It was noted that Transfers were limited to $44,000.00 for IT equipment and support. Ms. Ketter stated that the Contingency Fund was eliminated as a cost-saving measure. Ms. Ketter indicated that in the area of revenues, fines and fees were increased for a projected gain of $36,700.00. It was noted that these fees include overdue fines, photocopier and printing fees and charges for the use of the Community Room and equipment.

Ms. Ketter stated that the Library offers a wealth of information (books, pre-testing procedures, how to manuals etc.) electronically that a Rock Island citizen can access with their Rock Island Library Card. Ms. Ketter explained the process for logging on to the Library’s website. Council further discussed the process. Ms. Ketter also stated that this year, the Library will be charging for use of the Community Room, which will be a flat $5.00 rental fee per meeting.

Council further discussed the Friends of the Library as it relates to the Library Foundation in terms of operational dollars and the purchase of materials as well as donations.

FINANCE

Finance Director Bill Scott, Budget Coordinator Don Reichert, Accounting Supervisor Linda Johnson and Accounts Receivable and Customer Service Supervisor Kim Reda presented the Finance Department’s Budget for fiscal year 2009-2010.

Mr. Scott stated that the Finance Department underwent reorganization during this past fiscal year. Mr. Scott explained that in the past, the Finance Director was supervisor over nine (9) individuals. Mr. Scott noted that to reduce the administrative responsibilities of the Finance Director, a second level of management was added. The reorganization is as follows; The position of Administrative Assistant was transformed into the position of Budget Coordinator (Don Reichert), Two (2) supervisory positions were added; Accounting Supervisor (Linda Johnson) and Accounts Receivable and Customer Service Supervisor (Kim Reda). Mr. Scott stated that there were no changes in the budget staffing, but noted that this year, the department had an intern, but after assessing the budget, it was determined the department was unable to continue staffing an intern.

Mr. Scott discussed the Finance Department’s goals and objectives, noting that the City has been a long time recipient of the Government Finance Officers Association (GFOA) awards for its annual financial report and budget documents. Mr. Scott also discussed the Management Letter of Comments and the four (4) recommendations from the auditors last year, which included reconciling some loans, which has been addressed; the difficulty of preparing financial statements, which is being addressed through the reorganization and through the new software; the auditors complaint regarding capital assets, which has been addressed; and year-end audit adjustments, which is being addressed. Mr. Scott stated that in the area of banking services, with the approval of the City’s banking contract with American Bank, the City has redesigned the Utility Bills; worked with American Bank on the lock box process; the bank agreed to take over special assessments billing; and other various helpful suggestions from American Bank were implemented.

Mr. Scott offered that there have been challenges, specifically with the City’s purchasing cards; the City has had some losses. Mr. Scott noted that the Finance Department is working with Personnel to make some adjustments. Mr. Scott offered that in the area of improving efficiency utilizing electronic transmission, the e-Rock software application project was implemented in April of last year; the City is working on the Financial Management System and the HR Payroll System, which both were targeted to be on-line in early April, but may take a little longer. Mr. Scott stated that everything should be up and running by early summer. Mr. Scott noted that there will also be a software enhancement to the Govern System. Mr. Scott also discussed the centralized billing and collection systems. Mr. Scott offered that the centralized billing and collections systems have seen increased growth. Workloads have increased this year with annual registration and inspection fees from the Rental Inspections program. Also, Sunset Marina fees, special assessments and various other billings have been moved into the Utility Billing system. Mr. Scott stated that customer service has been enhanced; e-Rock has been implemented and the City is in the process of implementing the Red Flag Rules as it relates to identity theft.

Mr. Scott stated that the total budget is up 6%; Personnel costs are up 7%, which is a 50/50 split between salaries and benefits. Mr. Scott offered that the increase in Services is due to the addition of the cost for outsourcing payroll checks and an increase in banking service costs.

Mr. Scott then inquired upon Accounts Receivable and Customer Service Supervisor Kim Reda to demonstrate the new e-Rock on-line billing system.

Ms. Reda demonstrated how to pay utility bills on-line. Ms. Reda stated that a customer can log onto the system and view all utility bills that are owed including water, stormwater etc. Ms. Reda offered that if a customer calls and wants to pay their bill, there is a $5.00 charge, but by paying on-line, it is free, easily accessible and it is a valuable and time saving tool. Ms. Reda noted that a customer must first register on-line to have the capabilities of viewing their bills, paying their bills on-line and making copies of them.

Discussion followed regarding the e-Rock system regarding services and various marketing strategies as it relates to communicating that program to citizens.

INFORMATION TECHNOLOGY

Information Technology Services Department Interim Director John Thorson and Assistant Director Tim Bain addressed Council and provided information regarding the fiscal year 2009-2010 Budget for their department.

Mr. Thorson stated that the Information Technology Services Director position will be eliminated in this upcoming fiscal year. Mr. Thorson stated that a few priority projects that the Information Technology Services Department will be working on this fiscal year include; continuing the Communications Infrastructure Enhancement in the southwest area and continue participation in the Interagency Cooperative efforts; continue the video surveillance for the Public Safety vehicles; begin the Voice Over IP implementation and continue the Enterprise Software implementation, which includes Financial, Human Resource, Utility Billing and Ecare. Mr. Thorson stated that there are many ongoing initiatives and projects that are important and reflects a large scale of work that the department has to perform. Mr. Thorson offered that one of the issues that he sees is in the Security area with the Payment Card Industry (PCI), which is data standards and compliance schedules for credit cards. Mr. Thorson offered that the City is looking towards developing a policy with Personnel, IT, Parks and Finance on how credit cards are handled.

Council discussed financial software implementation as it relates to customer services and communication.

Mr. Bain commented that the Utility Billing system will be upgraded. The current system PUBS will also be upgraded to North Star. Mr. Bain offered that there is a lot going on with the Enterprise software and the Communications area. This year, the intergovernmental functions will be implemented. Mr. Bain explained that this intergovernmental cooperative effort is to focus on sharing public safety information. It is a fiber loop that connects the different public safety answering points.

Council discussed the intergovernmental functions.

Mr. Thorson stated that the overall budget is up 2%. In the category of Personnel, it is down 12% due to the elimination of the IT Director position. Mr. Thorson noted that the Supply category shows a 21% increase due to funding of $70,000.00 for the Public Works AVL project. In the area of Services, there is an increase of 27% due to software maintenance costs including Govern, City Works, Stormwater and Auto Desk CAD. Mr. Thorson commented that the Other category shows a 26% decrease due to cooperative efforts. In the Capital area, there is an overall decrease of 40% due to the software project that was funded last fiscal year and no longer being in the budget; the Communications Infrastructure at Fire Station number four (4) and the Hydro Plant was carried forward from fiscal year 2008/2009 as well as additional funding for the southwest Communications infrastructure and the beginning of VOIP implementation. Mr. Thorson stated that the Debt area is a new category and reflects an increase of $95,400.00 to pay principle and interest for the software purchase. Mr. Thorson concluded that in the Transfer category, there is an 81% increase due to the debt service funding of $95,237.00 and funding of the Business Process Review for Inspection’s Govern software and the Public Works AVL project.

Council discussed the IT Director position. Mr. Thorson stated that he is serving as the IT Interim Director. The IT Director position has been eliminated and the Personnel Director position will also be eliminated. Mr. Thorson noted that the new position will be renamed Administrative Service Director.

Mr. Phillips stated that the City is creating a new position and eliminating two (2) existing positions. Mr. Phillips offered that the recruitment for this new position will begin soon; it will be an internal recruitment and the City hopes to have a selection by April 1, 2009.

RECESS

A motion made by Alderman Brooks and seconded by Alderwoman Murphy to recess to Monday, March 2, 2009 at 6:45 p.m. The motion carried by the following Aye and No vote: those voting Aye being Alderman Brooks, Alderman Conroy, Alderman Pauley, Alderwoman Mejia-Caraballo, Alderwoman Murphy and Alderman Austin; those voting No, none.

The meeting was recessed at 12:06 p.m.

_____________________________

Aleisha L. Patchin, City Clerk