Mt. Vernon City Council met April 19.
Here is the minutes provided by the Council:
Call to Order
Mayor Mary Jane Chesley called the meeting to order. Roll call showed present: Council Members Jeff May, Dennis
McEnaney, Donte Moore, Todd Piper and Mayor Mary Jane Chesley.
Also present were City Manager Mary Ellen Bechtel and Finance Director Merle Hollmann.
Visitor/Citizen Request/Addresses From the Audience
No visitors spoke at the meeting.
Fiscal Year 2017-2018 Preliminary Budget Review
City Manager Bechtel reminded that this is a draft and not the final budget. The city's total projected revenue for this fiscal year is down by more than $873,000. Over the course of the year, the City Manager and Department Heads were diligent adhering to their budgets and reduced expenses by $1.4 million by laying off seven employees, implementing furloughs, and making insurance changes. It is estimated the city will have a surplus of $608,000.00 in its general corporate fund by April 30, 2017. Bechtel suggested that an estimated $560,000 of the surplus be moved into the capital account and used next year for capital improvements, equipment, etc. The annual change in the working fund balance is $48,340 which is $24,000 more than projected so the working fund balance ending April 30, 2017 is $3.4 million.
Bechtel proposed a balanced budget for next fiscal year 2017-2018 that shows a small surplus. Health insurance costs are projected to increase by $700,000 in premiums in the general corporate fund. The new budget also includes expenses for bringing back two of the laid-off employees at an estimated $119,000. She is comfortable with the current staffing levels even though the departments want more employees. The city will experience an increase of approximately $240,000 in payroll due to contract raises for employees. Health insurance premiums are projected to increase $700,000 in the next fiscal year. There is no revenue budgeted for demolition in this budget. It was clarified that the city is collecting more than enough revenue to pay the debt service on the 2010 and 2012 and create a surplus every year. There is a defined revenue source — The 2012 Bond issuance uses dedicated revenue from a I% Food and Beverage Sales Tax, a 2 cent per gallon Diesel Tax, I% Telecommunication Tax,.5% Home Rule Sales Tax and five 3% Public Utilities Rate increase beginning in May of 2009 — paying all the debt plus interest and still creating a surplus.
The final budget review will be held next Thursday, April 27, 2017 at 5:00 p.m. at City Hall Council commended the City Manager Bechtel and Finance Director Hollmann for their diligence and professionalism in presenting a balanced budget.
Executive Session
Mayor Chesley requested an Executive Session pursuant to 5 ILCS 120/2(c)(1) Personnel. Council Member Moore made a motion for Executive Session pursuant to 5 ILCS 120/2(c)(1) Personnel. Seconded by Council Member
Piper. Yeas: May, McEnaney, Moore, Piper and Chesley.
City Council Workshop
Wednesday, April 19, 2017
Adjournment
Council Member Moore made a motion to adjournment. Seconded by Council Member Piper. Yeas: May, McEnaney, Moore, Piper and Chesley.
The meeting was adjourned.
http://www.mtvernon.com/wp-content/uploads/2016/10/April-19-2017-City-Council-Workshop.pdf
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