Peoria Standard

City of Chillicothe Finance Committee met Aug. 14.

Here is the agenda provided by the committee:

The finance committee met on August 14, 2024, at 4:30 p.m., in the council chambers at City Hall. Present: Chairman D. White, Alderperson Sharp,

Mayor Hughes, Office Manager Passage

Also Present:

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

PUBLIC COMMENT

Patrick Semtner - 1021 Fourth addressed the committee by reading a statement regarding provision of a subsidy for reduced water rates to the only laundromat. (see attached)

Tom Wallace - 1425 Second addressed the committee. He runs the car wash and they raised rates to cover cost and he is in support of a subsidy.

Terri McCosh 1725 Sixth, owner of Plaza Cleaners addressed the committee. She voiced her concern regarding the water rate increase and how it has affected her business and her patrons.

Brady Miller 3927 Camden Circle, owner of Carnegie and the Mill addressed the committee in support of Terri McCosh.

PURPOSE

Review - Concerns regarding water rate increase - McCosh

Chairman White stated that Terri McCosh, owner of Plaza Cleaning Center addressed the city council regarding the water rate increase at the July 22, 2024 council meeting and was asked to submit her questions to the finance meeting.

1. How was the new water rate determined?

The city council has been looking at water rates for a long period of time. Alderperson Vanbruwaene gathered information regarding infrastructure that was necessary for the water/sewer department from there a rate was determined.

2. Why are the businesses that are vital to this community not given any kind of cost break?

Chairman White explained that the city has two agreements with other taxing bodies regarding water. He explained that businesses are vital to the community and explained concerns with potential cost breaks.

3. Why has the cities website not been updated to show new rates?

As ordinances are passed they are sent to the processing company that then updates the website. Since this usually takes some time, we do post the ordinance on the website once it is signed under the ordinance section. Also, a notice was created under recent news, where information was posted and also with a link you could obtain the ordinance.

4. What state law says the water dept must stand on its own? Where do I find this information?

Illinois Municipal Code- Section 11-129-6 - "Rates charged for water by such a municipality shall be sufficient at all times to pay the cost of operation and maintenance, to provide an adequate depreciation fund, and to pay the principal of and interest upon all revenue bonds issued under this Division 129. The holder of such a bond, or of any of its coupons, in any civil action mandamus, injunction or other proceeding, may enforce and compel performance of all duties required by this Division 129 including the making and collecting of sufficient water rates for the specified purposes and the proper application of the income therefrom."

There are also other sections of the Code, specifically within Article 11, Divisions 124-152, that require water funds/bonds/fees/rates to be kept in a separate fund and generally used for specific water service purposes (1) to pay the cost of operation and maintenance of the system, (2) to provide an adequate depreciation fund, (3) and to pay the principal and interest upon the revenue bonds of the municipality.

Chairman White explained the old tiered system of the water rates and how it declined.

He explained that during the analysis of the water rates, former Alderperson Vanbruwaene analyzed Water/sewer cost (i.e. operational cost, projects, wages, infrastructure, equipment) over a 20-year period. Then it was shortened to look at a five-year period for rate increases.

A discussion ensued regarding a potential solution regarding the water rate for the Plaza Cleaners. Chairman White requested that Ms. McCosh bring back to the committee some parameters for their business and to provide the ratio of total revenue for the business to the water amount. The consensus of the committee was to further discuss this issue at the next finance meeting.

First Quarter - Budget Review

Office Manager Passage gave a presentation regarding the first quarter budget review. (see attached)

City Audit Extension

Office Manager Passage advised the committee that Fiscal year ending April 2025 is the last year we are under contract with Phillips, Salmi & Associates, LLC to do the city's audit. They provided a proposal for FY26-$22,950, FY27 - $23,450, FY28- $23,950. She stated that they plan on having Lori Salmi, be the lead on the city's audit. The consensus of the committee was to present the proposal to the city council at the August 26, council meeting for approval.

Building Code Books

Chairman White stated that with the passing of the new building codes there is a need to purchase an inspector's collection of the 2021 Building codes to have on hand. The cost is $982.00. The consensus of the committee was to seek approval at the August 26 council meeting.

Invoice - Keach Architect - City Hall

Office Manager Passage present an invoice in the amount of $3,235.20, from Keach Architectural Design for preform from 4/1/24-5/31/24 regarding updating schematic designs. This is part of the contract the city entered into. This would be payable from TIF Business. The consensus of the committee was to present the invoice for payment at the August 26, council meeting.

Tax Levy

Office Manager Passage explained that it is time to begin to prepare the tax levy.

The 2023 Levy collected in 2024 was $823,009.00. A discussion was held regarding the increase to the tax levy. The consensus of the committee was to prepare the tax levy with a 4.9% increase and bring back to the committee for review.

OLD BUSINESS

Grocery Tax - HB 3144

Office Manager Passage advised the HB 3144 has been approved (Public Act 103-0781). The IML has given a model ordinance. She advised that if the city would like to implement the tax locally on day one, the first step is to pass an ordinance authorizing the tax. A certified copy of the ordinance must then be submitted to the Illinois Department of Revenue postmarked by October 1, 2025, in order for the tax to be imposed beginning January 1, 2026.

City Hall Renovation

Nothing to report

SUMMARY

Council Agenda Items

Audit Proposal

Invoice Keach Architect

Purchase - 2021 Inspector's collection of building codes

Chairperson Action - Nothing

There being no further business the meeting adjourned at 5:30 p.m.

https://cms9files.revize.com/chillicothe/08.14.2024%20finance.pdf