Peoria Standard

City of Chillicothe Finance Committee met June 12.

Here are the minutes provided by the committee:

The finance committee met on June 12, 2024, at 4:30 p.m., in the council chambers at City Hall.

Present: Chairman D. White, Alderperson Sharp, Alderperson Semtner, Mayor Hughes, Office Manager Passage

Chairman D. White called the meeting to order 4:30 p.m.

PUBLIC COMMENT

None

PURPOSE

Budget Review-Office Manager Passage advised that all elected officials have received the Budget Comparison Analysis Report for the month of May via email. Each line item should be at 8.33% unless it is an expenditure that is not paid monthly. Some line items throughout the budget are over the 8.33 %, however; most will average out by year end. Cemetery & Parks department are over in labor due to the fact that they are seasonal departments and it should stay within budget as the season ends. One General Fund project was brought forward - Dock Repair, however; no expense has been made. The city received approximately 66% of the cost of the dock repair from the insurance. One Road & Bridge project was brought forward - Street Overlay/curb improvement, however; no expense has been made at this time.

IML Risk Management Insurance Renewal -

This is the city's insurance for vehicles, liability, property, buildings, workers compensation. Above is a chart showing the cost for the past several years. Office Manager Passage stated it is time to submit the information for renewal. The insurance is on a calendar year. Renewal is due in June and the invoice is due in November. It was the consensus of the committee to continue with the IML Risk Management insurance and instructed Office Manager Passage to submit for renewal.

IML Annual Conference - Office Manager Passage stated that the annual conference will be held on September 19-21, 2024 at the Hyatt Regency Hotel. The projected cost per person is $2,044.30. There is $14,000.00 in the budget. Registration will open on Monday, June 17, 2024. Consensus of the committee was to bring to council the request to send a limit of six to the conference.

Appropriation Ordinance - Office Manager Passage is working with the supervisor to insure they have reviewed the draft of the appropriation ordinance. The appropriation ordinance serves as a limit on what the city may spend during the current fiscal year. Therefore, we must anticipate all possible expenditures. The public hearing will be on June 24, 2024 at 6:30 p.m. The appropriation ordinance will be presented at the June 24 council meeting and may be amended up until the vote of the council, which will be at the June 24, 2024 council meeting.

Water Rate Increase - Ordinance - The proposed water rate ordinance was presented for review. The consensus of the committee was to present the ordinance to council with the effective date of the increase being the billing cycle that is billed in July, which would be June to July usage. Office Manager Passage advised that the June water bill will have a notice placed on it advising citizens of the rate increase. A discussion was held regarding multiple users and irrigation rate. There are approximately 204 irrigation meters installed. A discussion ensued regarding the rate for the irrigation. The consensus of the committee was to have the attorney amend the ordinance changing the irrigation rate from .0440 to .0265 for July 2024, .0330 for July 25, and .03984 for July 26, which will represent 60% of the water/sewer charge. The consensus of the committee was to present the ordinance as amended to council at the June 24 council meeting.

Grocery Tax - HB 3144 Chairman D. White explained

HB 3144 (Sen. Castro, D-Elgin / Sen. Holmes, D-Aurora) is the local revenue bill. HB 3144 includes: the elimination of the statewide grocery tax, effective January 1, 2026; the subsequent authority for both home rule and non-home rule municipalities (without need for referendum approval) to impose a grocery tax locally, effective on or after January 1, 2026; and, new authority for non-home rule municipalities (without need for referendum approval) to impose a local sales tax on general merchandise.

Once the authorizing legislation (HB 3144) is signed into law, IML will release additional information that includes a model ordinance to implement the grocery tax locally and that explains important details about necessary timelines following the January 1, 2026, repeal.

The city stands to lose approximately $300,000.00 from the elimination of the grocery tax.

A discussion was held regarding other options to replace the potential loss in revenue such as; Reduce expenses, increase sales tax, implementing the grocery tax locally, or implementing a utility tax. Since the time line is January 1, 2026, the Department Revenue will need the city's ordinance should the council choose to enact a grocery tax by October 1, 2025 and can submit as early as April 1, 2025. The Ordinance would then take effect Jan. 1, 2026 if the ordinance is submitted by the above dates. If the deadline submitting your ordinance is missed, then it would not take effect until July, 2026. Therefore; the city would lose revenue. The bill does not allow the IDOR to take an administration fee. No action was taken at this time.

OLD BUSINESS

SUMMARY

Council Agenda Items – Appropriation Ordinance

Water Rate Increase Ordinance

IML Annual Conference

Risk Management Insurance

Chairperson Actions None

There being no further business the meeting adjourned at 5:27 p.m.

https://cms9files.revize.com/chillicothe/06.12.2024%20finance.pdf