The Mt. Vernon City Council met Aug. 25 to approve a subordination agreement.
Here are the meeting's minutes, as provided by the council:
The Mt. Vernon City Council meets regularly on the first and third Mondays of each month.
Jerilee Hopkins City Clerk
City of Mt. Vernon 1100 Main PO Box 1708 Mt. Vernon, IL 62864 cCITY OF MT. VERNON, ILLINOIS SPECIAL CITY COUNCIL MEETING Thursday, August 25, 2016 4:00 P.M.
MINUTES
The Mt. Vernon City Council held a Special City Council Meeting on Thursday, August 25, 2016 at 4:00 p.m. at the old Council Chambers, City Hall, 1100 Main Street, Mt. Vernon, IL.
Mayor Mary Jane Chesley called the meeting to order.
ROLL CALL
Roll call showed present: Council Members Jeff May, Dennis McEnaney, Donte Moore, Todd Piper and Mayor Mary Jane Chesley. Also in attendance were City Manager Mary Ellen Bechtel, Nathan McKenna and Jerilee Hopkins.
VISITOR/CITIZEN REQUESTS/ADDRESSES FROM THE AUDIENCE
Jim Rippy appeared to express his concerns about the City spending money on projects that benefit a few and not all residents.
Jere Shaw distributed a handout to the City Council containing dollar and percentage amounts for the proposed water and sewer rate increase and meter fee.
Ray Botch distributed a handout to the City Council containing his proposed 1?2% home rule sales tax.
SUBORDINATION AGREEMENT WITH WEEDY ACRES PROPERTIES, LLC
Bechtel presented for Council’s consideration a Resolution Approving a Subordination Agreement with Weedy Acres Properties, LLC. The City is the holder of a mortgage made by Weedy Acres Properties, LLC to the City of Mt. Vernon to secure an indebtedness in the amount of $125,000.00 with interest. The Community First Bank of the Heartland is the holder of a mortgage in the principal amount of $1,212,636.00 made by Weedy Acres Properties, LLC. The City subordinates the interest of its mortgage and lien within the Community First mortgage and only as to the principle sum of $1,212,636.00.
ityclerk@mtvernon.com
618-242-5000 FAX 618-242-6867 www.mtvernon.com
Special City Council Meeting Thursday, August 25, 2016
Council Member McEnaney made a motion to approve a Resolution Approving a Subordination Agreement with Weedy Acres Properties, LLC. Seconded by Council Member Moore. Yeas: May, McEnaney, Moore and Chesley. Abstain: Piper.
FUNDING OPTIONS FOR PUBLIC UTILITIES
Mary Ellen Bechtel, City Manager, presented worksheets based upon the meetings and feedback from the Council for financing public utilities improvements; 2% rate increase and $15.00 per month meter charge (capital investment fee), as well as a differential between commercial and residential customers. Bechtel noted that the State has agreed to allow the City to use the Revolving Loan funds of $1.3 million for infrastructure as long as it serves low to moderate income residents.
Council Member Moore urged the Council to consider balancing the repairs to the water system with sewer system repairs.
Funding sources to finance the repairs will come from the 2% rate increase and the monthly meter fee ($4 million per year for 5 years) as well as a low interest loan (1.75%) from the Illinois Environmental Protection Agency ($20 million).
Council Member May repeated that some of the cash flow to implement the improvements should be taken from the remaining 2012 bond revenue.
The following is a chart that illustrates the $1.2 million annual revenue using the tiered rate meter fee by size:
METER FEE BY SIZE OF METER — TIERED RATE
Pipe Meters Monthly Total Monthly
Income
2
Total Annual Income Residential 5/8" 5435 $12.00 $65,220.00 $782,640.00
3/4" 60 12.00 720.00 8,640.00
1" 103 18.00 1,854.00 22,248.00 2" 8 24.00 192.00 2,304.00 6" 2 48.00 96.00 1,152.00
Commercial 5/8" 684 25.00 17,100.00 205,200.00
3/4" 28 25.00 700.00 8,400.00
1" 103 25.00 2,575.00 30,900.00 1.5" 86 37.50 3,225.00 38,700.00 2" 8 56.25 450.00 5,400.00 3" 57 84.38 4,809.66 57,715.92 4" 23 126.57 2,911.11 34,933.32 6' 1 190.47 190.47 2,285.64
Government 5/8" 6 25.00 150.00 1,800.00
3/4" 2 25.00 50.00 600.00 1 1/2" 1 37.50 37.50 450.00
2" 9 56.25 506.25 6,075.00 3" 2 84.38 168.76 2,025.12 4" 5 126.57 632.85 7,594.20 6" 3 190.47 571.41 6,856.92
$102,160.01 $1,225,920.12
Bechtel presented worksheets based upon the meetings and feedback from the Council for financing public utilities improvements: water infrastructure improvement, water tower improvements, water line replacements, water meter replacements and water line relining. The CDAP grant match of $150,000 for every other year is included along with the IEPA loan with an interest rate is 1.75% for water and sewer projects.
Council believes the tiered-rate meter fee is a good approach to raising revenue. May and Moore want some of the remaining 2012 bond money used for these improvements. The Mayor requested the revenue raised for these improvements be earmarked, by Ordinance, for the capital improvement fund for water and sewer improvements. Piper does not want to include 2012 bond money in this water and sewer improvement plan. An annual review, during budget time, of the revenue and improvements is recommended.
Moore will coordinate with Bechtel some dates for Town Hall meetings to discuss the rate increase and meter fee with the public.
ADJOURNMENT
Council Member Piper made a motion to adjourn the Special City Council Meeting. Seconded by Council Member Moore. Yeas: May, McEnaney, Moore, Piper and Chesley.
The meeting was adjourned at 5:00 p.m.
Respectfully submitted,
Jerilee Hopkins City Clerk
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