Peoria Standard

City of Chillicothe Finance Committee met June 8.

Here is the agenda provided by the committee:

The finance committee met at 6:37 p.m., in the council chambers at City Hall. Present: Chairman Vanbruwaene, Alderperson Sharp, Alderperson Braun, Office Manager Passage, Superintendent of Public Works

Chairman Vanbruwaene called the meeting to order at 6:37 p.m.

PUBLIC COMMENT 

No public comment

PURPOSE 

Budget Review 22-23 – Office Manager Passage stated that Administrative Clerk Carr sent out the budget comparison report on June 2, via email to the elected officials and supervisor. In the month of May, the city typically received most all of the License fees such as liquor and amusements. State Income Tax revenue for the month of may was higher than expected. The state stated the reason for the higher amount is because Business Income Tax and Individual Income Tax receipts are higher than normal which causes the distributions to be higher. She advised she along with the supervisors will be monitoring the fuel line item and the electric line item through out the year due to the increase.

Appropriation Ordinance – Office Manager Passage advised the committee that the draft of the appropriation ordinance has been set to each supervisor for their review, was placed in the council agenda packet 5/23/22, and the required notice has been published. The hearing date will be June 27 at 6:30 and then the ordinance will be presented for passage at the June 27 council meeting.

Financing – New Water Well/Water Infrastructure needs - Chairman Vanbruwaene reported that at the public works meeting, held just before this meeting, Superintendent Sutherland brought cost for the New Santa Fe Well, repairing the old Santa Fe Well, and bringing Chestnut Well on line. Superintendent Sutherland explained to the committee how having Santa Fe Well down was putting stress on the other wells. The well motors are running an extremely long time trying to keep up with filling the towers. The potential costs are as follows:

Chestnut Well - $16,000

Old Santa Fe Well - $32,000

New Santa Fe Well - $370,000

Motor Repair for Wilmot $4,200

A discussion ensued regarding funding of the above costs. A discussion was held regarding increasing the user fee charge on the water bill from $5.00 to $10.00. Office Manager Passage stated that a $5.00 increase should increase the revenue approximately $13,000.00 a month/$158,000 annually. Alderperson Braun questioned the impact this would have on some citizens. Chairman Vanbruwaene explained that $350,000 was placed in the budget for the new well. He stated since the city will pay for these improvements out of reserve funds, that increase of the user fee would replenish the funds in approximately a little less than three years. He also explained that there are other infrastructure improves such as replacement of water mains and other pump house coming within 2 to 5 years and we will be considering a potential bond. He also stated that he is still looking at the water rates for a potential increase in rates that will be based on usage. Office Manager Passage stated that an ordinance would need to be drafted and policy changed to ensure that the increase is set aside in the reserve account. After discussion, the consensus of the committee was to place the topic of increasing the user fee as an agenda item to refer to the attorney to draft the ordinance increasing the fee from $5.00 to $10.00. Chairman Vanbruwaene stated that he would like this to move forward should the council agree sending it to the attorney, therefore he would like to have another finance committee meeting on June 22, 2022 after the public works committee meeting to review the draft of the ordinance.

OLD BUSINESS 

Water Rate Analysis – Chairman Vanbruwaene stated that he is working on the rate analysis. 

Update – City Hall Renovation Project – Nothing

Property 817 Sixth – Nothing to report

SUMMARY  

Council Agenda Items – Refer to attorney draft ordinance increase of user fee

Chairperson – Actions

There being no further business the meeting adjourned at 7:22 p.m.

https://cms9files.revize.com/chillicothe/22.06.08.Finance.MINUTES.pdf