Counting the minutes

For those who are interested, here are the minutes from this week’s Peoria City Council meeting:

: OFFICIAL PROCEEDINGS:
: OF THE CITY OF PEORIA, ILLINOIS :

A Special Meeting of the City Council of Peoria, Illinois, was held on Tuesday, May 9, 2006, at 5:20 P.M., at the Workforce Network Office, Suite 300, Conference Room 338 in One Technology Plaza at 211 Fulton, Peoria, Illinois, for the purpose of Identification of Council Priorities and Goals, Mayor Jim Ardis presiding.

Meeting

ROLL CALL

Roll call showed the following Council Members present: Gulley, Manning, Morris, Nichting, Sandberg, Spears, Turner, Van Auken, Mayor Ardis – 9; Absent: Grayeb – 1.

* Clerk’s Note: Council Member Jacob participated in the meeting via speakerphone since he was out of town and unable to attend the meeting physically.

Others present at the Special Meeting were City Manager Randy Oliver, Corporation Counsel Randy Ray, Director of Public Works Steven Van Winkle, Finance Director/Comptroller Jim Scroggins, City Clerk Mary Haynes, Joan Schaumburg from the Clerk’s Office, Members of the media, and interest citizens.

INVOCATION & PLEDGE OF ALLEGIANCE

Mayor Ardis requested a moment of silent prayer or silent reflection, and then he led the Pledge of Allegiance.

(06-253) IDENTIFICATION of COUNCIL PRIORITIES and GOALS

Mayor Ardis thanked the Council Members and Staff for attending the Special Meeting and participating in discussion regarding priorities for the 2007 budget discussion.

Mayor Ardis also thanked Council Member Turner, Council Member Nichting and Council Member Sandberg for their efforts in making this a Council driven budget process to help identify and discuss the Council’s priorities for the 2007 Budget. He introduced Mr. Paul Craig, Senior Fellow, Institute of Government and Public Affairs, and thanked him for facilitating this Special Meeting.

Mr. Paul Craig thanked the Mayor and Council for allowing him to once again serve as a facilitator and guide the Council in focusing on various priorities that currently existed in the budget, or discuss new initiatives that could become a reality in the 2007 budget, that would allow the Council to reach their goals in fulfilling their responsibilities to the citizens of Peoria. He said his main purpose was to help the Council determine what priorities would be included in the 2007 budget debate and discussion.

Mr. Craig said the 2007 budget would have a slight advantage which would be measured in terms of a 2% revenue stream. He said one of the more difficult decisions that this City and every other City would be facing were the requirements relating to GASB. He reminded the Council that in deciding what priorities would be of most benefit to the City, they would need to determine how these priorities would be funded. He said he felt confident that over the next few months, the Council could put into place a 2007 budget that would be acceptable.

City Manager Randy Oliver gave a brief overview of the 2007 budget which included the Five Year Revenue and Expenditure Projections; 2006 Operating Revenues; Tax Base Growth for Property Tax; Sales Tax Revenues for 2001 – 2006; Restrict Revenue and Mandates; 2006 Operating and Capital Expenditures; and Information/Considerations for 2007 and beyond.

City Manager Oliver pointed out there were two areas that were not factored into the current analysis. He explained that the Legislature had been contemplating changing some homestead exemptions that included senior homestead exemptions and homestead exemption for the disabled. He said the Legislature had also discussed implementing a DROP Plan for the Police Department and Fire Department personnel that would allow these employees to collect both retirement and salary. He said it was his understanding that neither of these plans would be executed in the current Legislative term.

City Manager Oliver referred to the handout depicting monthly Home Rule Sales Taxes from 2001 through 2006, and he explained the long range projection process regarding the Home Rule Sales Taxes, State Municipal Sales Taxes, and Local Use Taxes.

Council Member Sandberg requested that the City Manager provide a breakdown in the amounts received for Local Taxes with respect to the Local Motor Fuel Tax; Gaming/Joint Gaming Revenues; and Tax Increment Financing (TIF) Revenues.

Council Member Spears requested a report back regarding the amounts received from each individual TIF.

City Manager Oliver said he would provide the requested information in the City Manager’s Issues Update.

In response to Council Member Jacob regarding the amount of money the City would need to fund GASB, City Manager Oliver explained that currently, if no changes were made to retiree benefits, the cost would be between $7 – $10 million. He said the City was currently contributing $3.1 million, which would result in a net increased amount of $4 – $7 million. He added, if changes were made to the retiree benefit package, the City’s contribution could be reduced almost 50%. City Manager Oliver stated he had instructed the Health Care Committee to submit their recommendations regarding GASB to the Council on June 6, 2006, and he said he would like the decisions to be finalized before September, 2006, to accommodate any changes that needed to be made.

Council Member Turner pointed out that, in comparison to other Cities similar in size, Peoria had a leading edge and was the only City that had a formula in place regarding GASB45.

City Manager Oliver explained that GASB standards required the plan to be initiated the first fiscal year for entities with revenues in excess of $100 million starting after December 15, 2006, which determined that Peoria’s effective date would be January 1, 2007.

Mr. Craig suggested that each Council Member state the main priorities they felt should be included in the 2007 budget discussion, and if possible, how these priorities would be funded.

Council Member Gulley said he felt the City needed a strong Economic Development Plan that would include a comprehensive plan for infrastructure in neighborhoods. He said another priority would be to implement a massive urban renewal project in District One. He said, at this time, he did not have a revenue source for these priorities, but the Council needed to review projects that would have an overall benefit for the City.

Council Member Turner stated his priorities included public safety issues, providing basic essential services for the citizens, and freezing the headcount in all City departments. He said he felt department heads needed to commit to specific projects that were vital to the community and budget for the outcome of those projects.

Council Member Sandberg explained the priorities he felt needed to be reviewed. He said he would like Fire Station 11 to be properly equipped and fully staffed with an engine company, and relocate the truck company to its previous site. He said one of his capital goals was continued purchase of property for the development of a Western connection to the Central Business District which would help reduce traffic on Main Street. He said regarding the revenue stream, he would like to eliminate the garbage fee on the water bill, increase fees for parking decks in downtown Peoria, look for funding from State resources, reduce or transfer City programs that belonged to private or other public sector providers, such as animal control and dispatching. He said the City needed to look at alternatives to broaden the tax base. He explained that citizens paid 100% of operational costs for the 911 center, and the 911 board paid for the equipment. He said the number of employees needed to be downsized, or County residents should add the City’s cost to their property taxes. He said the Council should also review medical response fees for provided services in an effort to locate resources.

Council Member Jacob said he felt the City needed to concentrate on strengthening neighborhoods and embrace technology that was needed in specific departments. He expressed concern that the City might need to hire more Police Officers to provide additional public safety measures in neighborhoods where violent activity occurs more often. He said with regard to the Southern Gateway, he felt the City had an opportunity to apply for State and Federal Grants to help fund Economic Development projects that would result in investment throughout the community that would have a tremendous impact on the City.

City Manager Oliver explained that the Capital Budget amount totaled $10 million per year, and currently had a four-year wish list that included projects that balanced out to the amount of Capital funds. He said funding the Southern Gateway would require the Council to reduce $1 million in other projects currently on the list.

Council Member Nichting said his priorities included additional funding for thoroughfare roads, automation of parking lots and decks, which would create a savings over a period of time on the operating side, and joint purchase of utilities.

Council Member Van Auken said she would also like to see Fire Station 11 fully staffed and to return the truck company to its original site. She said other priorities would be to eliminate and replace the garbage fee; establish neighborhood TIF Districts and freeze tax levels in defined areas, and use any increase in assessed evaluation of properties only for that particular area. She said, if possible, she would like to have increased evaluation for additional problem oriented police needs for those TIF areas. She said various methods to increase revenue would be for the City not to widen any roads, streets, or intersections for the next year; combine Information Technology Services and Human Resource functions with the County; review the City’s health insurance plan. She suggested researching ways to replace revenue from the garbage fee by implementing a fire tax and a public safety tax to capture more of the service users who currently did not pay for services they received.

Council Member Morris said he extended his priorities over a five-year projection period. He said he felt the Council needed to identify $10 million per year as a goal; privatize, delegate, or eliminate unnecessary services; implement a comprehensive economic growth plan over the next five years; and invest modest amounts of additional City operational dollars in Economic Development projects. He said the City had extensive growth cells, corridors, a warehouse district, but did not have a handle on inventoried assets. He said he felt Peoria needed to become a “Walking City”, He said the growth cells were a good investment for the City, but he felt $2 million per year should be targeted from the current Capital Expenditures over the next five years and used specifically to establish a pedestrian friendly infrastructure in the downtown area, particularly in older neighborhoods. He said the Council should consider delegating services to other Public entities.

Council Member Manning said his main priority was urban renewal. He said the City needed to concentrate on the older neighborhoods and provide incentives that would encourage citizens to reside in those areas. He suggested freezing taxes in designated areas of the City, which would create a positive incentive for people to make improvements to their residents without being penalized with higher property taxes the following year. He said he felt this would draw people back to the core of the City where investments had already been made. He said if changes were made, he said he felt certain sections of the City would continue to decline in value, and people would continue to move out of the City limits. He said another priority would be for City to invest in technology that would allow the employees to be more productive and efficient.

Council Member Nichting requested that the City Manager research possible problems that existed in neighborhoods that might deter people from living in those areas.

Council Member Spears gave examples where the City had increased technology in certain departments, which resulted in an increase in staff rather than a decrease.

Council Member Van Auken suggested that the use of surveillance cameras by Police Officers from their computers would have a positive impact on monitoring troubled neighborhoods.

Council Member Spears said he agreed with most of the priorities that had been discussed. He said the 911 board was in the process of replacing technical equipment, and he felt the Council should review this issue and consider allowing the County to operate the 911 board as it did originally. He said he felt it would be more beneficial to establish a Countywide 911 board rather than having 911 boards for various Counties. He said he would like to see the drainage and sidewalk projects discussed in the Capital Budget. He suggested planting flowers to replace the sod that was planted along Sterling Avenue, which would decrease the maintenance cost of mowing grass. He said he felt this project would enhance the environment and add to the beautification of the City. He said he would like the City to research ways to receive Federal Grants. He expressed concern regarding how often the City replaced City vehicles, and he suggested extending the life of the vehicles for at least another year, which would help to increase the Capital Budget. He said he felt there would be a growth in property taxes due to the increase of new homes constructed over the past few years.

City Manager Oliver explained some of the City’s options regarding GASB.

Mayor Ardis said he felt GASB would have a definite impact on the 2007 Budget and the Council needed to obtain more information and present a plan to the City Manager that would allow the City to move forward. He explained some of his priorities included public safety and planning functions with Economic Development. He said he felt strongly about improving the school system, and he would like to increase funding to allow for more Police patrols, more Officers patrolling streets, and an increase in surveillance cameras if the current pilot camera project proved to be successful. He said he supported the staffing of Fire Station 11, and he felt this project needed to be a Council priority. He further stated on the planning side, he would like to utilize the Austin, TX Matrix as a guide to identify what our goals were for the City regarding the comprehensive plan, and to focus on an economic development strategy that utilized our transportation infrastructure currently in place which included the rivers, railroads and highways.

Mayor Ardis explained that with respect to revenue sources, the Council needed to analyze specific existing programs within each department to determine what projects the City might consider eliminating, which would add to the revenue source. He said he supported a public safety dedicated revenue stream which included Police protection and Fire suppression. Mayor Ardis said he felt the City had an opportunity to increase the revenue stream by utilizing the Fire Academy. He said he would like to receive information regarding this issue from the City Manager.

Mr. Craig summarized that it would be impossible to achieve all the priorities mentioned at this meeting, but he felt confident that the Council could re-prioritize and determine which priorities would be a greater benefit for the City. He explained that the prioritizing process included three steps. He said first of all, the Council needed to clarify and distribute their ideas to all Council Members to review and select what they determined to be the top three issues. He said the next step would be for the Council to examine the top priorities to determine if they were achievable given the existing opportunities for revenue in existing budgets, in existing growth projects, or in new revenue sources. He said this process would allow the Council to come to an agreement regarding what priorities needed to be included in the 2007 Budget. He said part of the process would involve the cost for each priority. He said the Council then needed to send directives to the City Manager regarding what areas required more information, what areas to generate activity in, what projects the Council wanted to initiate, and any analysis that might be needed for the projects. He said he felt the Council worked as a team and disciplined themselves to focus and pursue issues that were in the best interest of the City. He said if the Council made a dedicated effort to find new revenue streams through additional growth, an effective economic development plan, solid investments, debt management, and additional fees, they would accomplish their goals.

Council Member Nichting referred to the Budget Book that listed activities which were a source of revenue so the Council could decide which activities needed to be considered or eliminated.

In closing, Mr. Craig said he felt the Council had expressed strong concerns for additional economic development, greater efficiencies in providing government services, and concern for public safety. He thanked the Mayor and the Council for inviting him for a return visit and facilitate another meeting.

Mayor Ardis thanked Mr. Craig for his expertise in assisting the Council to identify top priorities for consideration in the 2007 Budget. He explained the priorities discussed at the meeting would be distributed to all the Council to be re-prioritized into what they determined to be the top three priorities. He said the top priorities would then be discussed at a future meeting. He said the Council should submit any questions to the City Manager.