Late State Payments Still Squeezing
General Fund; City Passes Annual Audit
By Mick Parsons For The Prairie Advocate News
MOUNT CARROLL – Two days after Christmas and in City Hall, the words were flying like reindeer during hunting season. Not surprisingly, the State of Illinois didn’t pay any of the money owed to the City. At the time of the meeting, the City’s General Fund had $5,645.64. And while that was better than being in the hole, said Alderman Doris Bork, it certainly wasn’t enough to cover expenses.
To some on city council, this means that everything that isn’t deemed necessary should come to a screeching halt. Aldermen Bob Sisler and Bork both said the city shouldn’t spend money it doesn’t have to – until its financial problems are solved. Others, like Aldermen Doug Bergren and Mike Risko suggested patience. But if patience is a virtue, there is little to be found on the council when it comes finding a solution everyone can agree on.
During the Finance Committee meeting, Sisler also claimed that the city has been spending more money lately than it needs to. “This is a pattern that’s taken place over the last three months.” Then Sisler – who is not a member of the committee, called for “a moratorium on excess spending.” Looking back over the previous three months, however, it’s difficult to find anything that wasn’t previously budgeted and accounted for – assuming, of course, that the state does what it’s supposed to do – except, maybe, the argument made by Alderman Tom Charles during the License and Ordinance Meeting two weeks ago, that city workers deserve a cost of living pay increase.
Two weeks ago, Charles made the case, saying that city workers didn’t get one in 2011. Charles also pointed out that even if it turned out that the city didn’t have the money for the increase, that it was important to at least have the conversation. And while he admitted that voting for a pay raise might seem unwise, Charles reiterated again that the city needs to find a way to make sure the city workers know they’re important.
Mayor Carl Bates said that it was good that the council was paying attention to the General Fund. “Benton Street took a lot of our money away. We knew that was going to happen. Unfortunately,” he said, “it’s kind of a perfect storm with the state not paying us.
“It’s not new news,” Bates added. “It’s been that way for about the last year or better.”
Mayor Bates also said everyone knew they were going to stretch the budget when they decided to go as far as they did on the Benton Street repair. “I’m glad we did,” he said, “Unfortunately, we’re sort of paying for it now.” He also pointed out that the city has had to take on other projects such as the hill on Mill Street and some work at the sewer treatment plant.
But he agreed with Sisler, in as much as he said that the council has to watch the budget carefully. “We have to be careful and knock on wood.” Bates also said that the city’s been lucky so far because there hasn’t been a lot of snow – though if there isn’t the city will still have to take delivery of the 75% of the salt it said it would take.
But after Risko – who is on the Finance Committee – said he was against any moratorium on spending, Sisler backed away from his own statement, calling it “a figure of speech.”
Risko also said that the council, in his opinion, has been doing a pretty good job keeping track of the finances; he also added that Finance Committee Chairman Tom Charles has been calling for and trying to take a more watchful approach – and not only since this latest snafu with the State of Illinois. “We ought to watch it monthly,” Risko said.
“We ought to watch it weekly,” said the mayor.
Alderman Charles admitted, however, that he wasn’t expecting the $10,000 bill for the paving of the hill on Mill Street.
“What I can’t understand,” said Alderman Bork, “is that was taken out of the General Fund. Why wasn’t some of that taken out of Motor Fuel Tax?”
Mayor Bates answered, “Because it wasn’t planned.”
Bork went on to say that it had been talked about for a couple of years; the mayor insisted, however, that it was never discussed.
In addition to voting for the proposed cost of living increase, the full council also voted to approve Police Chief Cass’s purchase of tasers and training for full and part time police officers – though both Sisler and Bork also voted against it. Sisler said during the Finance Committee meeting that he thought it might be a good idea to put the taser purchase “on hold” until the General Fund improves. He also took exception to Alderman Risko’s point that the cost of the tasers were budgeted for.
“Wait a minute,” Sisler said. “All the wages are budgeted for, too, but we don’t have the money. Just because an item is budgeted for, doesn’t mean you have the money.”
“Julie (Cuckler, City Clerk) didn’t get the money from the state,” he went on. “That’s not Julie’s fault. But everything we want to spend money for has been budgeted for. But that doesn’t mean we have the money.”
“That’s why we have to do the administrative juggling we’re doing,” Risko said. “The money’s coming.”
“But you can’t spend it until you have it,” Bork said.
“It (the money) is coming,” the mayor said.
“You have to be damn sure it’s coming,” insisted Sisler.
“Everything can’t come to a screeching halt,” said Alderman Doug Bergen.
During the Finance Committee meeting, when Alderman Charles brought up the 2.4% cost of living raise for full time city employees, Bork asked if he was taking into account the fact that the city’s IMRF contributions were also increasing. Charles said he wasn’t, and added that the workers are important to the city and should be treated that way. Mayor Bates added that the increase would amount to a total of $10,000 in an annual payroll budget that amounts to approximately $500,000.
Bates reiterated that money is still owed from the state which, if and when it’s ever paid, will change the conversation entirely.
“So we’re only looking at half that amount,” Risko said. “$5,000.”
“I want to do the right thing for everyone in our town,” Charles said. “And this is a good first step.”
With all the talk of budgets and expenditures, it was probably not at all surprising that contentious topics might come. One that did was the Community House Project, which has been used by current and past Aldermen to play wack-a-mole at the mayor’s expense for a few years. It’s been a personal concern for Alderman Doris Bork for longer than that. The council didn’t appropriate for it in 2011, leaving it in the mayor’s lap to try and get done for cheap or free. The project was appropriated for in the 2012 budget, the bidding process was completed quickly, and Zickau and Sons were awarded the project, which has already begun.
“We’re running $6,000 short in that fund,” Bates said. “And I said that when you guys approved that. Nobody listens. And now you want to stop. Do you want me to stop Zickau?”
Bork pointed out that the council has been talking about replacing the bathrooms at the Community House for a long time.
“The city’s employees are more important than those bathrooms,” Bates said.
“Are they more important than the handicapped people?” asked Bork.
Bates answered that there was no federal or state requirement that the bathrooms in the Community House be handicapped accessible.
“You want to stop a $5,500 increase over six months,” the mayor said. “But you want to spend $21,000 on bathrooms.”
Not surprisingly, when the pay raise recommendation came up in the December 27th regular city council meeting, both Sisler and Bork voted against the proposed 2.4% increase.
The city council also voted to approve the TIF expenditures it had agreed to in October. In addition to legal fees and $7,383.15 to the State Bank of Pearl City, the $30,405.65 in disbursements included the $5000 payment to the Mount Carroll Bowling Center, as well as payments of $1,000 to Schneider House and New Morning Glass. It also includes the Mount Carroll Community Development Corporation TIF Distribution to the Revolving Loan Fund in the amount of $20,500.
The only business in the TIF district to see an increase in property taxes was Main Street Commons, which paid $466.74 into the TIF; as per the agreement with the city, that money goes toward paying back the Revolving Loan Fund.
The remaining $14,123.35 will, as per the city’s TIF agreement with itself, go towards paying down the Water Debt Service, which now stands at $1,184,692.
In other council news, a representative from Winkle, Parker and Foster of Clinton discussed the annual audit and gave the city a clean bill of health. The council also voted for an ordinance related to city water meters, approved a resolution stating that the city supports the continued use of the Rockford Postal Center for the Processing of local mail, and approved a special use permit for Susan Rogers to operate a guest home located on her property at 102 N. Main Street.
