The Rock Island City Council met for the Budget Review session at 8:00 a.m. on Saturday, March 8, 2003, in the Personnel Conference Room of Rock Island City Hall. Present were Mayor Mark W. Schwiebert, presiding, and Aldermen David R. Conroy, John E. Bauersfeld, Vern L. Winter, Evelyn “Evie” R. White and Frank J. Forlini, Jr. Aldermen Terry M. A. Brooks I and Beth Y. Mahlo were absent. Staff present included City Manager John C. Phillips, Finance Director Bill Scott, Finance Accountant Tim Banks, Information Services Manager Claire Dubuisson, Finance Secretary Niki Fallon, and Personnel Director/Assistant to the City Manager John Thorson. Other staff members were present for the budget discussion regarding their department. Also present was Ann Keefe, Candidate for Sixth Ward Alderman.
City Manager John C. Phillips noted that the Council has been discussing many issues concerning the budget over the past months, and this is an opportunity to review these again and to ask questions of staff. Finance Director Bill Scott reviewed the budget document, and explained each one as to format. He noted that the budget document is organized by function rather than accounting structure.
Mr. Scott discussed the taxes, noting that the Property Tax will represent 27% of the total General Fund revenues. The Utility Tax is increased due to a shift in the allocation of the tax from the Capital and The Public benefit funds to the General Fund to offset declines in other tax revenues. He stated that the income tax is 12% of the General Fund revenues, and the replacement tax is 7% of the total General Fund revenue. He stated that the Sales and use taxes are 17% of the total General Fund revenue, adding that the sales tax for the City of Rock Island is 7%, with the city collecting 1.75% of that amount.
Mr. Scott discussed the Fiduciary Fund Types – the Firemen’s Pension Fund, the Police Pension Fund and the Cafeteria Plan. These funds are used to account for assets held by the city as a trustee or agent for individuals, private organizations and other governmental units. He also discussed the Health Insurance, stating that the budget indicated a 20% increase but the Health Insurance Committee has now indicated that the increase will be 15% with the changes being made to the Health Insurance Program.
Mr. Scott discussed Table 13, which indicated the numbers of personnel. City Manager John Phillips noted that the number of employees has not risen over the past ten years, and Mr. Scott pointed out that the budget shows a decrease of ten employees. He stated that, of these ten, six are Martin Luther King Camp Counselors who have been placed in another category. He stated that there really are four employment positions that have not been filled over the past year.
Alderman Conroy called attention to the table on Property Taxes, which shows an increase in Residential Property Taxes, but no increase in Commercial Property Taxes over the last ten years. City Manager John Phillips stated that staff would look into that and prepare a report for Council.
Alderman Bauersfeld stated that there is a need to look at the 71% of the budget for Employees and Benefits. Alderman Conroy asked for a five-year projection of increases in Personnel. Staff will prepare a report on this for Council.
Gerald Jones, Director of the Martin Luther King Community Center, entered the meeting at this time and presented the budget for the King Center. Also in attendance for this portion of the discussion was Dan Allen, Martin Luther King Community Center Board Member. Mr. Jones stated that there is an overall 16% increase in the budget, with significant monetary increases in Personnel and in Services. He indicated that the Personnel increases are in health and pension contributions along with the anticipation of normal merit and cost of living increases. He stated that the increase in services was from anticipated maintenance, repair and snow removal costs.
Mr. Jones then discussed the $35,000 for the study to be done on the King Center uses. Alderman Winter asked why the study was being done at this time. Mayor Schwiebert noted that the City was not in the position to do any expansion at this time, and it was not a good time to do an expansion unless other funding is available. Board Member Allen stated that the study would help them determine the ability and interest of other agencies, as well as the support for contracting with them in the future. He stated that the study would indicate opportunities and uses by the King Center and other agencies. Alderman Winter stated that the study also needs to identify other potential sources of revenue, and Mr. Allen noted that the study would include that.
Alderman Winter used the additional time to update the Council on some plans of the Housing Authority to work with the Robert Young Center and apply for twelve independent housing facilities. He stated that the Voss building would house thirty-eight apartments, with the downstairs being used for office areas. He stated that they will be working with the City Community and Economic Development Department as well as with Dan Carmody and the Growth Corporation to coordinate the use of the three proposed bungalows in the Douglas Park area as well as to look for better sources of funding. He also discussed the proposed market value use of Spencer Towers after additional housing is created for the disabled. He noted that the Housing Authority would be the funnel for housing as well as for funding.
Executive Director of the Centennial Bridge, Sue Nelson, entered the meeting at this time and presented the budget for the coming year. She noted the anticipated toll revenue and interest at a total of $240,000.00. She discussed the projections of expenses and revenue, noting her concern that the revenue would not be there to pay all the necessary expenses. Mayor Schwiebert asked Finance Director Bill Scott to prepare a report regarding the interest on the Bridge Money. Also, Bill Scott, City Engineer Jim Johnson and Ms. Nelson will review the projection costs and revenues for the Bridge and report back to Council with this report.
Police Chief Terry Dove, Captain Don Reichert and Captain Tom Payne entered the meeting at this time and reviewed the budget details of the Police Department. Chief Dove presented an overview, and also noted that Captain John Wright was not present because he is taking classes for his Master’s Degree. He noted that the three Captains have been shifted to different divisions as of January 1.
Chief Dove discussed the training and noted that one of the Senior Volunteers is assisting with the tracking of the training. He also discussed the Bike Patrol, noting that the officers who will be on Bike Patrol as well as the Senior Volunteers. He stated that the Bike Patrol will be used on the Bike Path and in the Parks, but also in the District at various times. He noted that the alarm fee increase as well as the $1.00 per hour charge for off-duty officers scheduling would enhance the revenue.
Chief Dove also discussed the grants that will be eliminated, and stated that the Local Law Enforcement Block Grant reduced one officer. He stated that there are five or six officers supported by Federal Programs. Mayor Schwiebert noted that this is one area that needs to be included in the briefing papers for the Washington trip. He stated that Homeland Security and the affect on the local Police Departments is an important issue.
Chief Dove stated that it is a Council decision whether or not to continue the D.A.R.E. Program, and it does not look like the additional money requested by Council from the school district was a part of their budget. Mr. Phillips noted that in a discussion he had earlier with Dr. Markward, it was stated that the $20,000 for the D.A.R.E. program is in the budget, but not the additional revenue. Chief Dove stated that the grant for the CAPE Officers who are located at Century Woods would be expiring January of 2004. He suggested that this has been a positive program, which has reduced the number of calls for service to that area. He suggested using the two D.A.R.E. Officer positions at Century Woods, but expanding their contacts beyond the Century Woods apartment units to the neighborhood around there. He also stated that they are always actively looking for grants that can be used by them. He also discussed a “Community Enhancement Team” which would go to the “Hot Spots”, incorporate community policing while alleviating the problems at the root level. He indicated that this would take personnel. Alderman Winter suggested using the $20,000 from the schools for the D.A.R.E. program until January and then incorporate these two officers in the “CAPE” program format.
Alderman Bauersfeld asked about the costs for the Senior Volunteer Program, and Chief Dove responded that the cost is minimal. He noted that the uniforms are utilizing the white shirts formerly worn by the Police, now that they are all wearing the navy uniforms. He stated that the vehicle being used is an old squad car.
Chief Dove stated that one challenge that will be coming up is that of Communications. He stated that they have to decide on an upgrade or new equipment. He stated that Captain Payne is working on the list of options that are available and they costs, and this will be coming back to Council. He stated that the Federal money from IEMA has been cut dramatically from 100 million down to 30 million. Alderman Bauersfeld asked for the communication study that was done in the mid 90’s by Bi-State. Chief Dove discussed the Animal Shelter issue, stating that the City Manager and Captain Reichert attended a meeting with the County to discuss a joint shelter. Mr. Phillips stated that they are still talking and there has been no decisions made for funding of this.
Community and Economic Development Department Director Greg Champagne, Planning Administrator Alan Carmen and Special Projects Manager Sally Heffernan entered the meeting at this time. Mr. Champagne reviewed the budget, noting the 13% reduction due to the decrease in the transfer of funds from the gaming fund to other funds.
Mr. Champagne noted that there are no reductions in Personnel, and the one position that has been vacant for several months will be filled in April. He noted that the Gaming Funds are being used for projects and not for personnel or benefits. He also noted that positions are being shifted from the General Fund to the TIF and Block Grant funding. He reviewed the Council Goals and the response in this budget to these goals. He indicated that the Southwest Housing goal has been addressed in part by the identification of one million dollars to facilitate residential subdivision; Infill Housing was partially addressed with the Sala Apartments downtown, the bungalow project, the condos on 17th Street and 31st Avenue, and other projects. He noted that the annexation of Suburban Heights was addressing the goal of annexation, and he and Sally recently attended the International Conference of Shopping Centers. He stated that they would have a report for Council in the next couple weeks. He stated that revenue enhancements include the building permit fees, and they plan to have a proposal for increased mechanical and plumbing fees before April 1.
Alderman White asked about outside agency funding, and whether or not these agencies would be requesting increases. Mr. Champagne stated that the amount requested by DARI is a Board decision, and the money for the outside agencies comes from Fund 207 that includes gaming as well as Hotel/Motel Taxes.
Alderman Winter asked for an explanation of the CDBG fund balances. Mr. Carmen stated that the 1.1 million would be drawn down by about 50% and also the person coming on board April 7 would have as a basic function the administration of the CDBG funding and funds will be drawn down regularly once that person begins working. Alderman Winter asked how we can effectively utilize CDBG funds that will help us balance the budget and provide some relief. He asked for a breakdown of how the 4.2 million dollars is to be allocated and an explanation of the drawdowns. Mr. Champagne stated that the uses of these funds have to meet national objectives. Mayor Schwiebert asked Mr. Champagne to come up with ideas and programs that have been done for uses of economic development to stimulate growth, and ways to creatively sue revenues to grow, looking at ideas that have been effective in other areas. Alderman Bauersfeld asked staff for a summary and overview of the CIRLF program.
Library Director Ava Ketter and Assistant Director Amy Penry entered the meeting at this time for the Library Budget Review. Ms. Ketter introduced her Board members who were present, including Nancy Hass, Ruth Brunson and Deann Thoms. She discussed the budget, noting that their goal is to maintain the services at the same level. She stated that the Public Libraries get used more when times are bad because people check out books and movies from the libraries for entertainment, and use the library as a source of information for researching business possibilities and other things. She stated that the staffing will remain at the same level, and the fines and fees are up. She discussed the video rentals, and stated that they are purchasing DVD’s and Videos from local stores like K-Mart and Target because they can get them cheaper than from their regular source. Alderman Conroy suggested raising the video rental fees.
Alderman Winter asked for an explanation of “reciprocal borrowing” and Ms. Ketter responded that this means that holders of a library card from an area library can use the card in another library that is in the Quad City Data Base. She explained that if a person visits the Rock Island Library and cannot find the book they want, the librarian can call other libraries that are part of this agreement and the person will be allowed to borrow the book from that library that does have the book.
Ms. Ketter noted that each library in the area is specifically identified as a resource for one thing, and Rock Island Library is identified as the resource for Small Business information. Mayor Schwiebert suggested that they have someone from the Small Business Development Center or SCORE come in to do workshops.
Ms. Ketter also discussed the new computers for the Quad-Linc System that will be much more user friendly. She noted that the computer system with the city is working very well. She discussed the new gates and the front door greeter that have improved the security. She also noted that they are doing a complete inventory. She stated that two major expenditures would be a roof and boiler for downtown. It was suggested that she look at the possibility of a bond for the major capital items. Ms. Ketter stated that Blackhawk Township contributes 89% of the operating costs of the Southwest Library. Ms. Ketter also noted that the Friends of the Library contributed $13,000.00 last year from book sales and the group has grown in size so much that they now have to meet at the First Baptist Church across from the 30/31 Library.
Park Director Bill Nelson, Bill Fetty, Tom Hergert, along with Board Members Ann Austin, Fred Dasso and Pete Nyman entered the meeting for the review of this portion of the budget. Mr. Nelson discussed the effect of the economy on the parks and recreation in the area. He noted that RIFAC has had an increase in memberships, but the golf numbers were down. Council asked for a report regarding where the people are coming from. He stated that the expenses were held down, and there is basically nothing new. He stated that the CIP project is the parking lot at the sport complex.
Mr. Nelson talked about Whitewater Junction, noting that the plan is to have a Donor Party on May 17 and a Grand Opening May 24. Alderman Bauersfeld asked about the fund balances from previous years, and Mr. Nelson stated that they would be applying to get funds back after the bills are paid for the pool. Alderman Bauersfeld suggested that they look at the possibility of using bonding to pay for the major costs of improvements such as those to the golf courses. Alderman Conroy suggested that the cost of money is down now and this would be the time to get the money.
Mr. Nelson stated that RIFAC is now back to normal scheduling following the construction project. He stated that the increases there would help make up the difference generated by the slow golf season. Alderman Winter asked about the Pro Shops and the turnover in the inventory. He suggested reducing the inventory. Mr. Fetty stated that they need to have certain things in, and it is a guessing game as to what the customer wants so they try to have a variety of items in stock.
A motion made by Alderman White and seconded by Alderman Conroy to recess to Monday, March 10 at 5:00 p.m. CARRIED on a Roll Call vote. AYES: Aldermen, Conroy, Bauersfeld, Winter, White and Forlini. NAYS: None.
The meeting was recessed at 12:50 p.m.
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Jeanne F. Paggen, City Clerk