Peoria Standard

City of Canton City Council met December 19.

Here is the minutes provided by the Council:

Staff In Attendance:

Mayor Kent McDowell, City Attorney Curtis Lane, City Clerk Diana Pavley-Rock, Treasurer Crystal Wilkinson, System Maintenance Superintendent Dash Wilson, Comptroller Lou Ann Armstrong, City Engineer Keith Plavec

Median Attendance:

Daily Ledger, Fulton Democrat

Video Services By Joe Gnger

Pledge Of Allegiance Opened The Meeting-Boy Scout Troup 124

Invocation - Rev. Phil Fleming

Public Participation -Jeannette Ewing addressed the Council regarding the leasing of the Campground around Canton Lake. One of the largest concerns is a rate increase and the freedom to come and go as they please. They have concerns about how the lake would be ran and the parking for those with pontoon boats. The Canton lake was made to bring the family for a weekend adventure without having to go out of town. Several campers have been at the lake for several years and has brought revenue to the City, Concerns were also addressed about where the funds are going that should be going to the campground for improvements, The campground currently brings in approximately $35,000.00 per year. Jeanette said she would like everyone to reconsider the leasing of the campground. Those at the campground would consider paying higher rates to keep the campground from being leased,

Tim Taylor addressed the Council and said he would like to know exactly what type of changes would take place. Tim said he would like to have the information brought out in the public so everyone is aware on what changes would take place. Tim Taylor gave petitions to the City that he received from citizens not wanting the campground leased. Mel Harris said he does not know why the City would want to lease the campground to a group outside of Canton when things at the Canton Lake are being ran properly now.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Additions or Corrections to the Agenda

Consent Agenda

Monthly Disbursement Report

Treasurer's Report

Police Report

Alderman Jump questioned why the police report shows that the criminal arrests have tripled from 2016-2017. Mayor McDowell explained that citations are considered an arrest and could cause the report to show an increase in criminal arrests.

Fire Report

Greenwood Cemetery Report

Motion and second were made by Aldermen Nelson/Lovell to approve the consent agenda.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Motion and second were made by Aldermen Nelson/Lovel to go into executive session for:

5ILCS 120/2(c)2, (c) 5, (c) 6

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Mayor McDowell called the meeting back to order after the executive session.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Motion and second were made by Aldermen Jump/Mayhew to move Lakes, Building and Grounds Committee to the beginning of the meeting.

The motion carried by voice vote and was unanimous.

Committee Reports:

Lakes, Buildings And Grounds Alderman Tad Putrich, Charman:

Discuss Consider And Wote On The Bids Received For The Canton Lake-

Alderman Putrich said the City is going to table this item. The City will hold a public meeting on January 2, 2018 at 5:00pm to discuss the leasing of the Canton Lake and Campground area. This will be in a question and answer session with the Herman Brothers to talk about their plans with the lease of the lake. The City has not made any decisions on the proposed lease and would like to let the public have the opportunity to attend the meeting and ask any questions they may have.

Anyone that has any questions could send an email to the City Attorney, Aldermen or any other staff member so they could be presented at the meeting.

Finance Alderman Ryan Mayhew, Chairman:

Discussion And Approval Of The Fy 2017 Audit By Phillips & Salmand Associates LLC-

Aaron Phillips said that the April 30, 2017 audit is completed. The accounting processes with Clifton Larson Allen, Crystal Wilkinson, Dan Bender and Diana Pavley Rock overseeing things are in place. There are no problems with the internal processes. The policies and procedures are going well.

There is a disconnect between the fire and police pensions and the accounting functions, it is much better now than it was in recent years. There have been major improvements over the years with the pension accounting.

The Council receives information from the accounting department on a monthly basis, Aaron said that the information that the Council is receiving on a monthly basis is accurate and it can be relied upon when decisions are being made.

A Supplemental financial statement was presented and is on file. This is an internal document for Council and management to review to see where we have been over the last 5-6 years,

The general fund revenue in 2012 was 7.5 million dollars. Now the revenues are at 8.5 million dollars. In 2017 there was a property tax increase that came through, so property tax revenue is up. Intergovernmental revenue and income tax was down in 2017 compare to 2016. Overall the general fund revenues are pretty consistent, maybe a little trend going up.

The expense side it is also pretty consistent. Between 2016 and 2017 the amount of money spent on projects and capital improvements needed to come to a stop. 2017 was very lean especially with capital outlay Compared to prior years.

The general fund is the main operating fund and is very important that this fund operates at a balanced budget. In 2012 2013, 2014 the general fund was at a negative. During 2015 there was some capital outlay, 2016 and 2017 were both positive in the general fund. The trend has been to monitor the spending and increase revenue.

The property tax and TIF revenues have been very strong.

The water and sewer fund-- At the end of 2016 there was a huge amount of money owed from the prison for their water bill. The City received a lot of this money back during 2017. This large payment from the prison is reflected in 2017's numbers.

The Inflows compared to the operating cost and debt service needs to be a positive number. The City has a huge water and sewer system to maintain. In 2012 it was positive, in 2013 and 2014 it was negative. In 2015 and 2016 it was a positive number, in 2017 it was also positive, but this was due to the City receiving the large payment from the prison for the past due water bills.

The capital outlay on money spent to keep the system up and running needs to be a priority. the lack of excess of funds is concerning. In 2012 there was over 4 million dollars in cash and restricted cash. This number was reduced in 2016 to just over $900,000. Aaron expressed concerns over this.

Aaron said the City needs to look at what amount of money it take in capital outlay long term to sustain the water and sewer operations,

27% of operating expenses is non personnel related. The remainder is personnel related. 2013-2017 gross wages are actually down from 2013, Payroll taxes are relatively the same. Total personnel cost is up about $550,000.00. Health insurance is up $200,000.00. Pension contributions are up $350,000.00. The head count has gone down since 2013.

The things out of our control are the health insurance and the pension contributions. Aaron said this is very concerning,

The police and fire pension actual pension costs in 2013 was 1.5 million dollars. In 2017 they have gone up to over 1.8 million dollars.

Alderman Jump asked what a potential raise in sales tax would do as an impact on the City's finances.

Aaron explained that the sales tax increase they imposed has allowed the City of Washington to keep the property tax at a good rate. Aaron said that is an avenue that he would consider to increase revenue.

Motion and second were made by Aldermen Mayhew/Nelson to approve the audit for fiscal year 2017 as presented.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Discuss, Consider And Wote On An Ordinance Levying And Assessing Taxes For Corporate Purposes Of The City Of Canton, Illinois For The Fiscal Year Beginning May 1, 2017 And Ending April 30, 2018 (2nd Reading) Ordinance #4089-

The City previously discussed the idea of keeping the property taxes low and put a sales tax on the referendum. The City agreed to contract for an outside actuarial study. The City received this actuarial study back today. The City is looking at an annual contribution by the City in the amount of 1.1 million dollars. The City is currently under funding the fire pension.

A representative will come in to give a more detailed look at the actuarial. They will present some proposals on how the City can catch up the deficit of approximately $550,000.00. The City could do the minimal, but the State will come back with numbers that are potentially 3040% higher. The City needs to get a plan in place going forward.

The ordinance that was sent out has a 1% increase which would be a total of $27,230.00. This option has the fire fighter pension of $630,000.00 The police pension is $404,000.00, The way the pension works is that a portion is from property tax and then the other is from replacement tax.

With the numbers presented the City has a $318,000.00 shortfall. The numbers received today were from the independent study and could be higher from the State acturiarial study. The City will need to study the actuarial reports before a decision is made.

Alderman Mayhew said that sales tax is an idea that could potentially help the City. If the State comes back with an acturiarial that is higher, Alderman Mayhew said he is not sure where the money is going to come from.

This ordinance needs to be filed with the County by the end of December so the County would need to decide on the proposed ordinance.

Alderman Nelson said that if we don't do a 5% increase we are just digging a bigger hole. We can't go above 5% without a public hearing, but these numbers have our hands tied. Alderman Mayhew said that he does not want to go with the full 5% increase, if we go up to the 5% increase it will be harder to try to pass a sales tax referendum,

Mayor McDowell said that if staffing is the only thing that's left to look at the City will need to look very hard.

Comptroller Lou Ann Armstrong said that if the City decides on a 2% increase, the City will still need to figure out how they are going to have a balanced budget when we start discussing the upcoming budget. The ordinance to levy taxes would need to be filed by December 26, 2017.

Alderman Lovel explained that he wants to explore other options without raising property tax and sales tax. The City needs to look at all options- which could include a review of staffing.

Lou Ann Armstrong explained that when the City starts to work on the new budget we will be short and will be looking for other revenue options, There are a lot of challenges ahead and tough decisions will need to be made.

Motion and second were made by Aldermen Putrich/Lovell to levy taxes with a 1% increase.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Discus, Consider And Wote On An Ordinance Abating All Of The Bond Levy For The 2017-2018 Fiscal Year (S10,000,000 Principal Amount Alternate Revenue Bonds Series 2012 And $2,810,000 Principal Amount Alternate Revenue Bonds Series 2013) 1st Reading) Ordinance #4090-

This is an annual abatement that will not be part of the levy because we have alternative funds to pay for it. This will need to be filed with the County.

Motion and second were made by Aldermen Nelson/Jump to waive the first reading of the ordinance.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Motion and second were made by Aldermen Mayhew/Lovell to approve the ordinance and place it on file.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Discuss, Consider And Wote On Anordinance Calling For The Submission To The Electors Of The City Of Canton, Illinois At The March20, 2018 Primary Election The Ouestion Of Whether The City Shall Impose Non-Home Rule Municipal Retaler's And Service Occupation Tax. (1st Reading) Ordinance #4091.-

The last day to adopt the ordinance is January 2, 2018. This is the first reading of the ordinance.

Motion and second were made by Aldermen Nelson/Lingenfelter to waive the first reading of the ordinance.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

The motion carried.

Motion and second were made by Aldermen Nelson/Lovell to approve the ordinance and place on file,

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Discuss, Consider And Wote On The Purchase Of A New Fire Hose For The Fire Department Engine #3 From Banner Fire Ecuipment In The Amount Of $6,444.00-

Motion and second were made by Aldermen to Mayhew/Lovell to approve the expense,

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

The City will hold a budget meeting on January 23, 2018 at 5:30pm in the Director's Room of City Hall.

Legal And Ordinance Alderman Craig West, Chairman:

Alderman Chris Jump Acting Chair

Discuss, Consider And Wote On An Ordinance Adopting A Policy Prohibiting Sexualharassment For The City Of Canton (1st Reading) Ordinance #4092-

A state law was passed that required all municipalities to pass an updated ordinance adopting a policy prohibiting sexual harassment.

Motion and second were made by Aldermen Jump/Nelson to waive the rules for the first reading of the ordinance,

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Motion and second were made by Aldermen Nelson/Putrich to approve the ordinance and place it on file.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Discuss, Consider And Vote On A Resolution Approving An Agreement Between The City Of Canton And Home Field Energy For The City Owned Property. Resolution S128

The Council previously granted the authority to the Mayor in signing an agreement with Homefield energy to lock in a rate. The resolution will place the agreement on file with the City. The previous rate was.048% and the new rate is.045%.

Motion and second were made by Aldermen Nelson/Putrich to approve the resolution

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Discuss And Consider An Ordinance Establishing Procedure Processes For PSEBA Claims:

City Clerk/HR Diana Pavley Rock explained that this is being presented for and suggestions or changes to the proposed ordinance.

The Illinois Municipal League is recommending that an ordinance be established to develop procedures in processing claims for PSEBA. The public safety employee benefit act was established in 1997 to provide health insurance benefits when a full time law enforcement official, firefighter suffers a catastrophic injury or is killed in the line of duty. The municipal league did not feel there was anything that defined a catastrophic injury. The league thought it would be a good idea for municipalities to have an ordinance that would define catastrophic injuries and procedures for municipalities to follow. This will be brought back after any changes are made as a first reading of the ordinance.

Approval Of The 2018 Committee And Council Meeting Dates:

Motion and second were made by Aldermen Jump/West to approve the 2018 dates,

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Negotiations, Grievance & Personnel Alderman Chrisjump, Chairman:

Discuss Consider And Wote On Separation Agreement For Tom Shubert Resolution #5129-

Alderman Jump explained that the City previously voted on a separation agreement for Chief Tom Shubert. Attorney lane explained that the separation agreement previously presented had an oversight by Attorney Lane and Chief Shubert,

Mr. Shubert previously requested a separation agreement be prepared that would be similar to the prior police chief. The agreement for the prior police chief stated that the City would pay for the insurance at 100% for him, his spouse and dependent children.

Attorney Lane explained that when he created the separation agreement he did not place dependents in the separation agreement. The City would not pay for the insurance for the dependent child under the current separation agreement.

Attorney Lane asked if the Council wants him to amend the separation agreement to include language so the City would pay for the dependent child's health insurance.

Alderwoman Lingenfelter said that the agreement has language that states that the employee has been advised by the employer to consider this agreement for a period of not less than 7 days and carefully read this agreement and to confer with his attorney prior to him signing it.

City Clerk/HR Diana Pavley Rock explained that the cost for employee-spouse is S1,444.12 per month and the cost for family coverage is $2,036.65 per month.

Diana further explained that it is important for the Council to understand that the City also previously passed a longevity step increase in the amount of $7500.00. The current personnel policy does not have any language for non union employees to receive a longevity step increase. The union employees have language for a longevity step increase in their contracts, but the union employees are also required to offset the longevity step increase by paying an equal amount in higher insurance premiums, The Council did not require tom to offset his longevity step increase with higher insurance premiums when the resolution was adopted.

Section 12.3 of the personnel policy states that at age 50 and if you have 25 years of service, the City would pay 100% of the premium for the retiree, the spouse and the dependent children. Tom's hire date with the City was 12-04-1993-which would give Tom 24 years of Service with the City. In reviewing the personnel policy-Tom does not have 25 years of service as stated to receive the insurance being paid at 100% by the City,

Alderman Putrich said that Chief Shubert was good enough to stay with the City during the transition with the new administration. It was the intent of the Council to provide insurance coverage for the entire family so an amendment should be made to the separation agreement,

Motion and second were made by Aldermen Jump/Putrich to make an amendment and add the dependent child (up to age 26) under the insurance coverage in the separation agreement and have the City pay the premium at 100%.

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

Community And Industrial Development Alderman John Lovell Chairman

Public Works, Water And Sewer Alderwoman Angie Lingenfelter, Chairman

Public Safety And Traffic Alderwoman Angelahale, Chairman

Streets And Garbage Aldermanjustin Nelson, Chairman:

The leaf program has ended and residence are reminded of the Snow removal ordinance as we approach colder weather.

Mayor Communication:

Mayor McDowell thanked the Boy Scouts for their work at the Canton Lake

Mayor McDowell wished everyone Happy Holidays and Merry Christmas

Old Business

New Business

Adjournment:

Motion and second were made by Aldermen Nelson/Putrich to adjourn into executive session for

5ILCS 120/2(C)2, (C)5, (C)6

Roll Call:

Alderman Justin Nelson Yes

Alderwoman Lingenfelter Yes

Alderman Putrich Yes

Alderwoman Hale Absent

Alderman West Yes

Alderman Lovel Yes

Alderman Jump Yes

Alderman Mayhew Yes

The motion carried.

http://www.cantonillinois.org/vertical/sites/%7B3A712A47-3D50-49B4-9E78-DBB8A8D0F159%7D/uploads/12-19-17_Canton_City_Council_Meeting_Minutes.pdf