Peoria Standard

City of Chillicothe Finance Committee met April 16.

Here are the minutes provided by the committee:

The finance committee met on April 16, 2025, at 4:30 p.m., in the council chambers at City Hall. Present: Chairman D. White, Alderperson Sharp, Alderperson Semtner, Mayor Hughes, Manager Passage

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

PUBLIC COMMENT

None

PURPOSE

Presentation - Jerod McMorris - Community Solar

Jerod McMorris, Good Energy Representative gave a presentation regarding community solar.

He explained that community solar is for city owned accounts and could save the city approximately 5% on supply and delivery. See Attached. The consensus of the committee was to place community solar on the May 12 council meeting.

Jerod McMorris, Good Energy explained that the contract for the city own accounts and the street lights are coming due and discussed renewal rates. The consensus of the committee was to place this on the council agenda for April 28.

Budget Review 24-25

Office Manager Passage provided advised that all elected officials have received the March 2025 Budget Comparison report via email. It represents 11 months of the fiscal year. A full year end review will be given at the May finance meeting.

Budget 25-26

Office Manager Passage advised the committee that at the public works committee it was reported that four inlets on Cloverdale road need repaired. The proposal of $19,750.00 was given however; they did not address the issue as one committee member was absent. This expense will impact the FY25-26 budget as it was not included during the budget presentation. The repairs need to be made in conjunction with the Cloverdale project. She requested that $20,000.00 be added to the Road & Bridge operating budget - line item M & R Streets. The consensus of the committee was to add $20,000.00 to the Road & Bridge Budget. The consensus of the committee was to add $20,000 to the road & bridge budget for M & R Streets for said potential expense. She also reported that there has been a change in the distribution of the Use Tax. All retail sales sourced outside of Illinois and made to Illinois customers by retailers with nexus to Illinois are subject to destination-based Sales tax instead of Use Tax. Therefore; use tax should decline and sales tax should increase. However; it may not be one-to-one. The city received the first distribution with the change and use tax declined by approximately $12,000.00 and sales tax only increased by approximately $1,761.96. Should that be the trend then a recommendation would be to lower Use Tax and potentially increase sales tax slightly. The amount budgeted for use tax was $145,000 which should be lowered significantly. Sales tax was budgeted at $850,000.00, which was already increase by $50,000.00. The consensus of the committee was to lower use tax by $100,000 and increase sales tax by $100,000 in the FY25-26 budget.

City Hall - Asbestos/Lead Removal

Chairman D. White advised the committee that Robert Mellecker, Midwest Environmental Consulting has submitted the bid document for review. He reviewed the documents and there are several questions regarding the document. Therefore; he recommended that a buildings committee be formed by the Mayor so the documents could be reviewed further, with Mr. Mellecker present and a plan established regarding what is done first, where will staff be moved to, when floor coverings are removed what will be the process to put new floor coverings back, who will move all furniture and an updated cost estimate. Chairman D. White will report at the April 28 council meeting under council committee communications.

Appropriation Ordinance

Office Manager Passage stated that it is time to begin the Appropriation Ordinance process.

The Appropriation Ordinance must be passed within the first quarter of the fiscal year.

A public hearing must be held prior to adoption and the ordinance must made available for public inspection 10 days prior to the adoption.

Below is a potential time table for the Appropriation Ordinance

May 12, 2025 Advise Council of Public Hearing-June 23, 2025

May 14, 2025 Give a draft to committee for review and recommendations

May 27, 2025 Present to Council Appropriation Ordinance for first Reading

May 28, 2025 Send notice to paper for publication of public hearing Publish On June 2, 2025

June 2, 2025 Make available appropriation Ordinance for public inspection

June 9, 2025 Remind Council of Public Hearing.

June 23, 2025 Public Hearing 6:30 P.M. (before council meeting) - Passing of Appropriation Ordinance

June 27, 2025: File Appropriation Ordinance

The consensus of the committee was to proceed with the above time table to adopt the appropriation ordinance.

CEFCU - Ground Lease Agreement Renewal

Office Manager Passage presented the Notice to renew lease that was received from CEFCU.

The original lease agreement allows for a 5 year renewal with the rent increasing from $650.00 to $700.00. The consensus of the committee was to forward the notice to renew lease to the city clerk to present to council on April 28 and place on file.

SUMMARY

Council Agenda Items - Approve FY 25-26 Budget

Approve Electrical Aggregation - Street Lights/City Accounts

Chairman Update - Need for Buildings Committee

There being no further business the meeting adjourned at 5:24 p.m.

https://cms9files.revize.com/chillicothe/04.16.2025%20finance.pdf