Peoria Standard

Canton City Council met January 29.

Here is the minutes provided by the Council:

Mayor McDowell called the meeting to order at 6:00 pm.

Public Safety & Traffic

Alderman Angela Hale, Chairman

Streets & Garbage

Alderman Justin Nelson, Chairman

Lake, Buildings & Grounds

Alderman Tad Putrich, Chairman

Status Update:

Mayor McDowell said he will allow anyone to speak at the meeting that would like to do so.

Alderman Putrich said he would like to strike item #5 (purchase agreement terms and condition)

Alderman Putrich further explained that no determination has been made by the City regarding the proposal from the Herman Brothers. The City is still discussing and research various items regarding the lake development and the proposal.

Lake Development Fund And Lake Related Finances:

Comptroller Lou Ann Armstrong explained that she would be discussing the lake finances as well as the City's finances in general.

The Lake is a separate fund from the City's general fund. It has a separate bank account and is individual in the accounting software. A report was generated that showed revenue and expenses going back to 2014 to come up to an average. The lake fund consists of lot leases, campground fees and boat permits. The average amount generated on these three items is

$18,000.00 over expenses for the last five years. The lake fund operates more like a business- it purchases capital assets and then you can depreciate them. There has been a lot of confusion about depreciation. Depreciation is not money in the bank.

The City has boat revenue, camping revenue, lot revenue and other misc revenues. The type of expenses that get taken out of this include labor, equipment, utilities, supplies and services. The labor is for the campground hostess. In 2014 there was a couple of improvements made which included the installation of the playground and the pavilion. There is extra labor in 2014 for the extra work performed in preparation of these items.

There are expenses that are performed at the lake that is not charged to the lake fund. There is no charge for sewer pickup, garbage pickup or administration fees.

The cash spent during 2014 was for the playground and the pavilion. In 2016 there was a dam project. Most of the dam project was covered under a grant that was received by FEMA. Some of this expenses was paid out from the campground fund. In 2017 there was a road repair.

The City receives its funds from two primary sources which is user fees and taxes. The water department, lake development, cemetery and garbage department operates solely off of the user fees. The City receives three primary sources of taxes which are property taxes, income tax and sales tax. The City sets a tax levy for property taxes. Once this is determined the tax levy is spread out over all of the residents. If there are fewer residents the individual property taxes will be higher. The City reviewed census information going back to 1970. In 1970 Canton had a population of 14,217. In 1980 the census was 14,262. In 1990 the census was 13922. In 2000 the census was 15288 The population increased due to the opening of the prison. In 2010 the census was 14704. The estimate for 2016 is 14397. The next census will be in 2020. The reason the census numbers are important is because we receive sales tax based upon the number of residents. As the number of residents decline, the amount of sales tax received is less. It is important to the City that we try to maintain a population level that is not decreasing.

The taxes that we received based upon population include sales tax, motor fuel tax and replacement tax. These are all primary revenue sources for the City.

The property tax is also an important source of revenue for the City. This is based upon the number of occupied houses in the City. In 1970 there was 5381 houses. In 1980 it increased to 6109 houses. In 1990 there was 5907 houses. In 2000 there was 5677 houses. In 2010 there was 5406 houses.

The number of houses in the City of Canton continue to go down. This ultimately has a large impact on the amount paid for taxes.

The Mayor ran at the last election on a platform to not raise property taxes. The development at the lake is one way that he has looked into to try to increase the tax base.

The total amount for the dam project was $221,000.00. The City received $168,000.00 by a grant. The grant was received in two different installments. City engineer Keith Plavec explained that the split was 80/20.

Alderman Chris Jump further discussed the lake fund as well as the dam project. Alderman Jump said he would like to see $25,000.00 moved into the dam repair account so we are complying with the statute. If any dam repairs are made in the future it will be very clear where they are coming from.

Discuss And Consider The Lease Terms And Conditions For The Campground, Main Boat Ramp And The Beach.

Alderman Putrich explained that he sat down with Attorney Lane with some suggestions that will help better protect the City.

Attorney Lane said he would like to clarify some mis-information that he is hearing from the community.

*A referendum is not allowable under this circumstance. Even if it was allowed the residence at the lake could not vote since they are not in the City limits. We can't just simply put something on the ballot and allow people to vote that doesn't qualify under the law.

*The rules, rates, ordinances and control of the ramps also has incorrect information being discussed in the community.

The bottom line is that this is still a work in progress. There is information that is going around in the public that is simply false information.

The City will continue to work to get something that benefits everyone. The City is still negotiating and revisions have been sent to the Herman Brothers Attorneys.

*The closure of one of the boat ramps is not part of the proposal. The City would still retain control and keep this open. There is discussion about making it ADA compliant.

Attorney Lane further explained that a conflict of interest has to arise out of some type of financial benefit. If an alderman was part of the Herman Brothers properties that would be a conflict of interest. The question that previously came up regarding the aldermen that work at Graham Hospital would be a conflict- is not true. This would not be a conflict of interest.

Further discussion took place about the process voting on the subject. Attorney Lane explained that the Committee can discuss the proposal, but they would then need to refer it to the full Council for a vote.

Alderman Lovell said he wanted to clarify a misconception regarding privatizing the lake. The City is not looking at privatizing the lake. The initial proposal did include closing the road, but the council did not like that part of the proposal so the counter offer would not allow for closure of the road.

Alderman Putrich explained that the City has been working on a revision to the proposal with ideas presented by the City. This was sent to the Herman Brothers attorneys for review as the negotiations continue. The City is simply in a negotiation process with nothing final at this point. The City is taking the residents recommendations into consideration during the negotiation process to make this best for everyone.

A citizen made a comment about not being able to vote in the City since they do not reside within the City limits. The residents can contact the chairman of the lake, building and grounds committee (which is currently Tad Putrich) to voice their concerns or make any suggestions. If the City does vote to approve the proposal the City could annex the properties at the lake into the City limits which would then give the residents at the lake the ability to vote within the City.

A citizen asked what part of the west side of the lake will be public. Alderman Putrich said that the Herman Brothers proposed to buy everything from the campground to the boat dock would be private once they sell it. The public will have the area from the campground going east to the dam.

Further discussion came up again about how the citizens could get a referendum placed on the ballot. Attorney Lane explained again that it is not legal to place this on the ballot and would simply not be allowed even if petitions are received.

Alderman Jump said the purpose of the meeting tonight is to hear the concerns and comments from the public to be able to create a counter proposal to take to the Council floor for a vote. Alderman Jump said one of the items discussed is the terms of the lease. Some have been concerned with a 25 year lease. The Herman Brothers is proposing to put a significant investment into the campground. Alderman Jump said he agrees that a 25 year lease would be too long. One of the options being considered is having renewal terms.

Alderman Jump said the would require is seeing an accounting performed on a monthly basis to show all revenue received as well as the expenses from the leased property. The City would need to make sure that money is being spent back at the campground as promised to do. If they are not then they would be in default of any type of lease. The City will need to maintain control over the rules, ordinances and rates. Any counter proposal would need to include these items and be very clear that it remains in control of the City of Canton. The Herman Brothers would not be able to set the fees or make any changes without the City': counter proposal process. The City needs to keep this affordable to everyone and provide anyone with a lower income the means to be able to utilize the lake. Alderman Jump said he would like to see how revenue is spent by the Herman Brothers during the improvements. Alderman Jump said he would like it be required to have local contractors for any construction or improvements made by the Herman Brothers. Having local contractors do the work will keep the money in our community. Alderman Jump would also like to see free public access areas.

It is important to hear ideas from the community so a counter proposal can be made.

Further comments from citizens was made that they don't want the City to sell or lease the Canton lake.

Alderman Jump expressed concerns about the low number of residential housing permits issued by the City. It is crucial that the City look for ways to bring new housing to the community to get property taxes.

The City had their first budget meeting last week and the City is starting the budget discussions at a deficit of over $600,000.00. This City must look at new ways to generate revenue and have some development.

Further comments was made by the public about developing different areas instead of the lake area.

The city must be open minded and consider all options,

John Green and Tim Lindsey addressed the committee and the public regarding their concerns with Youth acres. Youth Acres has been part of Canton lake since 1940 with thousands of youth coming to the lake. Canton Lake is perfect for youth acres because of the amount of undeveloped shore line for fishing, kayaking and having picnics. If the City allows a third party company to come in and take over the lake they are concerned that it will affect There is not guarantee of the future of Youth Acres if this proposal is approved.

Eric Barnard addressed the committee and the public with his concerns over the proposal at the lake. Eric said he has boated Canton Lake for many years. Eric thinks that the Council should reject the proposal duc to safety issues at the lake with boating and water skiing. The lake the size of Canton having additional boats brought in would make the lake unsafe. Allowing more docks in the lake will be another hazard for people. Eric further explained that he believes the lot sizes being proposed by the Herman Brothers is not practical, nor what the City was asking

for.

Another citizen addressed the committee and the public and explained that he is against the proposal. The lake should be a recreational area instead of a place where more houses are built.

Discuss And Consider Lake Fishery Management And Options:

Nate Herman and Chad Herman addressed the committee and the public regarding their proposal. Nate and Chad said they have been listening to the Council as well as the community on what everyone is wanting to help the community. Their job is managing recreational lakes and ponds for people across the United States. They provide consultations for municipalities with lakes similar to Canton Lakes. They speak at campground association meeting about revitalizing their property for recreational use. They would be able to help the community to better utilize Canton Lake. They hear the concerns from the community. The Herman's want to help Youth Acres and any organization in the area. The Herman Brothers purchased the Goose Ranch in 2014 and renovated it. People are concerned that they will make another Goose Ranch, but it will not be the same. The Herman's explained that if they could utilize boat s revenue to come up with the funds it would help bridge the gap to help with what the lake actually needs.

Canton Lake has an incredible opportunity to be the best fishery in the State of Illinois. There are species of fish that do not naturally reproduce in the lake, but they could help better maintain fish that would thrive. The Herman Brothers would want to have a voice with the lake committee and the IDNR to help with the lake.

Chad Herman explained that their goal was with the proposal is to have a calibration with the City that would be a win-win for everyone. They want to be very honest and upfront and work with the City on what everyone needs. The proposal is 44 lots on 25 acres which is a very generous lot size. This is very doable in this area. The Herman's have read the counter proposal and is continuing to work together to come up with a plan that works for everyone. The Herman's invite anyone to contact them with questions or concerns. Nate Herman explained that with the previous development they find they can generate more bald eagles. They love rainbow trout and they would plan on having rainbow trout at the lake that would bring in more eagles that what is currently at the lake. The Herman Brothers has raised over $150,000 at Goose Ranch for Camp Big Sky and they have handicapped tournaments. The Herman Brothers would continue to work with the community in having a scholarship for families less fortunate. The Herman Brothers would also like to create handicapped accessible fishing docks that would be open to the public at all times. The Herman Family said they are also discussing with the council to have an area open to the public.

The Herman Brothers is wanting to have a nature trail at the lake area.

The Herman Brothers further explained that they would not be interested in 24 acre lots instead of the 44 lots. Chad Herman said he would not consider that as an option. The cost would need to be so high for the homeowners he does not believe they would sell.

Alderman Jump asked if the Herman Brothers have considered sewer instead of septic for the lots. The sewer is located 4400 feet away from boat dock road. The cost estimates received have been approximately 1.1 million dollars to bring the sewer line in and facilitate to the lots being proposed. The cost for the septic system would be approximately 1/2 million dollars for the lots. It does not make financial sense to bring the sewer line in as a developer unless the City would want to assist with the cost.

The 44 septic systems is what is being recommended and they will be tested every three to five years. These would all be brought up to the current codes that changed in 2015. The current codes are very strict on the types of septic systems that can be put in and how close they have to be from the lake and how the percolate into the soil. The typical life of a septic system is 2025 years. Old systems are dug up and new systems are put in. The Herman Brothers explained that their covenance would require them to dig up the old septic system and put in a new septic system right in the same spot.

The Herman Brothers stated that they have built 4-5 homes in the Canton area. They have also built lodges in the area which would bring this total up to 10. They do not build any homes or lodges until they are sold. Chad further explained that he has personally designed and built and sold over 300 homes during his career. The average cost of the homes built and sold is approximately 1/2 million dollars.

There is currently a trend for less square footage and more amenities. These homes will not be as large as what was built in the last 10 years. The homes will be approxin feet as an average. Some of the homes may be larger that this number while others may be smaller.

Some of the lots are 1 acre and some are 2 acres so the 44 lots could be built on the proposed lots.

A citizen wanted to know if the 44 lots are sold and homes are built, where would the proposed nature trails and public spaces be located. Chad explained that the City of Canton owns from where they are proposing all the way around the lake to Youth Acres. All of this land is undeveloped. There is approximately 431 acres of this land available for public use. There could be amazing amenities and nature trails and fishing areas in these spots for the public. The City also discussed the motorcycle track area for a nature trail.

The proposal would include parking areas off of the streets for the access. This would very similar to the way the parking is at Wildlife Prairie Park.

The 44 lot subdivision would pay $30.00 per month of $360.00 per year to go back into the lake and helping with fish stocking.

The Herman Brothers has not performed an actual study of Canton lake to see how many boats could be on the lake and maintain safety, but this is what they do as a profession. The Herman Brothers help recreational lakes figure out how to best utilize their resources on how they use the lake. This will be not a scenario where the Herman Brothers will be making this decision, but will have recommendations and discussions with the lake committee to see how to best utilize the lake safely. Oak Run has over 2000 lots and is a 680 acre lake. Lake Thunderbird has a 150 acre lake and has 529 lots on it. The utilization will be very much less than these two lake studies.

A citizen asked if the Herman Brothers took into consideration the sediment issues on the north side of the lake. Chad explained that Nate checked all of the depths of the lake along the entire shoreline. They are aware of the sediment issues on the north side. The no wake area is from the Campground all the way to the dam.

Chad said that they nor the City could not ever please everyone, but it's about trying to please the most people and getting the most use out of the entire lake for everyone. Chad stated that he is very confident that they can work with the City and come up with the best solution that will please the most people.

The Herman's said they are asking for a voice with the lake committee to help come up with these ideas.

The Herman Brothers would have a homeowners association. Once the subdivision is developed, the homeowners subdivision then takes over their job of approving the homes that come in. This would allow the people that are actually living there to approve the next homes that are being built. The Herman Brothers explained that they would love the opportunity to work with the residents on the other side of the lake by utilizing Tad Putrich and the lake committee to let everyone have a voice and come up with ideas on how to best utilize the lake.

The Herman Brothers has the ability to help with the sediment in the north side of the lake, but the question is addressing the cost. Dredging is not ever a cost effective way. The only cost effective way would be to lower the lake and to remove the sediment. This would cost over a million dollars to do this. Dredging would be 2-3 times this amount. The best use is to make sure that it is marked and people are aware of it. The boats would need to stay away from this area. It does create kayaking opportunities.

The Herman Brothers would not deem if the City is unsafe and turn people away. The City Council and the lake committee would need to do this. The Herman Brothers suggestion is to regulate nonresident rates higher if the lake gets too busy.

Alderman Putrich encouraged anyone that has any further questions to contact their aldermen or himself as the lake committee chair.

Public Works, Water & Sewer Alderman

Angeila Lingenfelter, Chairman

Adjournment:

Motion and second were made by Alderman Hale/Lingenfelter to adjourn. The motion carried.

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