HomeMy WebLinkAboutMINUTES-1993-01-09-1993of E v-1+
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CITY COUNCIL
January 9, 1993
A SPECIAL MEETING of the Evanston City Council was held on Saturday, January
9, 1993, at 9:14 A.M. in the Council Chamber to consider the 1993-94 City of
Evanston Budget.
ROLL CALL - PRESENT:
Alderman Nelson
Alderman Wollin
Alderman Engelman
Alderman Rainey
Alderman Lanyon
Alderman Warshaw
Alderman Fiske
Alderman Newman
Alderman Paden
A quorum being present.
ABSENT: Alderman Feldman
Alderman Drummer
Alderman Davis
Alderman Brady
Alderman Esch
Alderman Heydemann
Alderman Washington
Alderman Kent
Alderman Moran
Deputy City Clerk Mary Morris announced that, in the absence of Mayor Joan
Barr, nominations for the election of a Mayor Pro Tem were in order and that,
in accordance with Council Rule 15.7, Alderman Esch was next on the list of
aldermen by seniority who have not served as Mayor Pro Tem. Alderman
Heydemann nominated Alderman Esch. Seconded by Alderman Paden. Motion
carried. No nays.
PRESIDING: Mayor pro tem Esch
Mayor pro tem Esch called the meeting to order and announced there would be
CLOSED SESSION at the conclusion of the meeting.
Docket 1-1A-93: Proposed 1993-94 Budget - Consideration of the
proposed budget for the City of Evanston for the fiscal year 1993-
94. A copy of the City Manager's recommended budget was
distributed December 31, 1992. Budget review sessions have been
scheduled for January 9, 16, 23, and 30, 1993, and a Public Hearing
on the Budget is scheduled for February 1, 1993 at 7:30 P.M.
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City Manager Eric A. Anderson began the meeting by giving an overview of th
financial condition of the City. He noted that this budget is impacted b
internal and external conditions. The internal conditions are determined by
budget policy which was set by Council and includes elimination of or control
of increases in the property tax; the elimination of use of one-time revenues
by the end of the next fiscal year; the requirement to maintain existing
services at existing levels; and the need to address resolution of Police and
Fire pension issues.
The are also external conditions imposed on the City over which there is no
control. One is the slowly recovering economy from recession, that is
creating difficulties with revenues. The City will have to make provision for
the loss of 1% this year and next in property tax revenues (about $250,000
loss); sales tax revenue is estimated to.be down $240,000; the City is not
anticipating the kind of sales tax collections that were anticipated last
year at this time. He mentioned the reduction in state funding -
specifically the expiration of the income surtax on June 30 (loss of $1.8
million).
He spoke of crime in the community and the City's response - overhiring of
three more officers with more patrols. He mentioned there had been high
settlements on workers' compensation claims and liability suits against the
City. He said that a number of those had been held for a number of years got
resolved this year. He mentioned losses with the recycling center this year
which will continue next year.
City Manager Anderson then talked about progress that had been made. Ir
reference to charts handed out, he noted the Chicago Consumer Price Inde.
from 1976 through 1992 - pointed to large increases in early 80s, then the
drop down to 4 to 5% over the past six or seven years. Compared with the
property tax increase, there is a similar pattern. These were superimposed,
but he noted the budget policy CPI is different than the CPI calendar,
because it was calculated from September of the first year to August of the
following year. He pointed out that subsequent to 1984, there was only one
year in which the increase in the property tax was greater than the increase
in the CPI. If the average is taken, the City is below it.
Alderman Nelson recalled that there was one year where Council broke its rule
because of the amount of money received from the state. The reason the
amounts were higher in 1979 was that was the first year the. City had a budget
policy and also a year with low capital debt. That was the first year the
City began five year plans in earnest and a cap of $50 million was put on
capital improvements. For the first four years of the budget policy the City
had to phase in the capital improvement program. That was why the budget
policy increases exceeded the CPI.
Anderson said that if the budget proposal with regard to the property tax is
adopted by Council for 93-94, it will be the third year where the property
tax is the same - or about .043% lower than in 91-92 three years of
stability. He termed that the latest in a long line of success in Counci
policy of controlling tax increases.
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ith reduction of the one time revenue in 91-92, the City had about one time
1.7 million dollars of revenue supporting ongoing expenses in the budget.
Policy was adopted to eliminate that this year as proposed, there is
$699,000, or about a $1.1 million dollar, reduction in that. He anticipated
that when staff comes to Council by end of the next fiscal year, there will
be no use of one-time revenues to support ongoing expenses.
One area �f progress has been reorganization of city staff. The budget as
proposed is the culmination of a lengthy analysis resulting in elimination of
60 positions. He referred to the full time equivalents chart - noting that
1993-94 represents the smallest organization since 1976 - and has been done
without loss of service.
He stated there had been some progress in resolution of pension funding and
exploration of how that would be funded.
He also talked about the hard work Council had done in preparing to go from
and eighteen member body to a nine member body; reorganization of the
managemeat structure of the City; the success of the summer youth employment
program tm be repeated; the Howard Street Police Outpost was opened; a number
of significant actions were taken regarding gangs and drugs; the Recycling
Center ww opened; the sewer improvement program went forward; the new
library -Wilding is well underway; the construction of a new Fire Station has
been auttorized and there is work on the site acquisition and preparation of
aterial Council needs for evaluation of architectural work and costs; the
chlorine treatment was put in to combat Zebra Mussels; the City dealt with
issues of lead and copper levels in water due to new federal standards; there
was an AD: evaluation of all City buildings; and the City has a new customer
service initiative underway.
Anderson said the City must continue to make progress. There are two
important, things going on. First is that the City is weathering a bad time -
revenues are tenuous in some areas - the cost of goods and services is going
up. Secondly, we are adjusting internally - a fundamental realignment is
going on as to how the City is handling its finances. It is a difficult
adjustmett, because the City is going from a situation in which it was using
one time revenue; and with control on property tax increases, the City does
not have opportunities for increases. The City has to restructure staff and
control lersonnel costs which are all a part of restructuring. It won't last
forever. He predicted the City would be in much better shape to deal with
externalforces by the end of the next fiscal year if it went forward with
this budget, the realignment would have been made. He said the City would be
much better able to deal with the vagaries the world will surely throw it.
What is crucial is to be able to adjust to what occurs without distorting
service Aelivery, without distorting the financial system. The City needs to
have reso`ves and by the end of the next fiscal, the City will have few
reserves. That is a difficulty, but the City will be in a position to
replenisk those reserves without damaging the systems.
The overril strategy is to continue the budget policy. Staff needs to focus
on the bprovement of the quality of service which affects the budget for
training, computer proposals and other initiatives. The City must address
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community issues as they are presented in hiring and employment. Counci
changes are crucial. The organization and operation of Council is crucia
and it has worked diligently through the year so the new Council will step
into a situation that is as good as can be made.
Customer service is a major issue, so that staff is more responsive to the
needs of the community, in terms of depth, breadth and especially speed and
can support the reduced -size Council effectively.
In economic development a number of initiatives are underway. He said the
City needs to continue and go forward with them.
He referred to a major computer proposal under consideration that will
improve record keeping and service without adding staff.
He mentioned the need to address Police and Fire pension issues within the
next six to eight months, although that would not impact this budget, but the
94-95 budget.
He then turned to Revenue Assumptions on page M-9 - listing, assumptions, then
to and a chart listing revenues with the revenue history from 90-91,91-92,
the budget and estimated receipts for this year. The next column is the
difference - what was budgeted and what is estimated to come in. The last
column is what is proposed for 93-94, the next fiscal year.
Anderson pointed out that the City will lose an additional percent o
property tax collected because some property taxes are not being paid an
some appeals of taxes will result in lower valuation of some properties. The
loss on collections is $387,506. He indicated the problem is occurring in the
current fiscal year as well.
In response to a question from Alderman Heydemann if anything could be done
to collect taxes, City Manager Anderson said property taxes are collected by
Cook County.
Alderman Newman asked if the City knows what percentage of uncollected taxes
are leasehold taxes? Finance Director Shonk replied that we don't know that.
It would be compiled and made available.
In response to Alderman Warshaw's question about prior year losses
anticipated`at $200,000 and increased to $250,000, Bob Shonk said presently
we are collecting the 1991 levy in 1992 and the reserve against that is only
1%. We anticipate a least a couple hundred thousand shortfall - under 1992-
93 estimated. That deals with what is going on today. Under 92-93 actual
estimated revenue column and you see the $200,000 for prior year, that's a
rough estimate of what we will experience in loss on the 1991 levy. At this
point it would appear, we are going to have a loss. For the 93 budget
property tax revenues are budgeted on an accrual basis so that 1992 levy will
not be collected until 1994. We have a 1993 levy projection which is the
Ime amount as 1992 and have raised
rcentage so hopefully when it is
loss because the reserves have been
reach the 98% mark, it 's possible
budget column.
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the reserve for that 1993 levy by another
collected in 1994, there will not be any
raised. To the extent collections don't
there could be a small loss in the 93-94
In response to Alderman Engelman's questioning of the need for the additional
1% in reserves and comment that most of the 1991 levy should be in, Mr. Shonk
said the present experience is that 95% of the 1991 levy is in, which is way
below what should be in. Mr. Shonk went on to give results, of the 1990 levy.
On the 1990 levy, the City has collected 97.1% and should have collected 99%
by today.
Alderman Warshaw expressed confusion as to why taxes are not paid, assuming
properties sold, revenue would come in. Hardly anything ever gets to a
scavenger sale in Evanston.
Mr.Shonk said that one thing that happens - say in the given year of 1992 -
the levy is passed, adopted, the tax base is set by the Assessor, the
equalizer comes down, they have an EAV, the rates are calculated - at the
point rates are calculated, there's nothing that can be done about the levy.
Subsequently you have taxpayers who protest their bills, get error
corrections, and get reductions on their rates -'reductions after the fact.
ity Manager Anderson said this is something that is forced upon the City
hich has to be dealt with through the fiscal year.
City Manager Anderson turned to other revenues - retail and service
occupation - budgeted at $4,890,361 for current year; actual collection of
$4,650,000 - a collection about $240,000 below what had been hoped for. He
believes it will get better before the end of the fiscal year. The tax is a
function of buying - a 1% tax that virtually every municipality has. Next
year an increase is estimated. The assumption is that the economy will
improve, sales will increase and the revenue stream will be larger. An
optimistic estimate. Given the pattern of improvement, it has improved as the
year progressed.
Alderman Brady suggested looking at financials - mentioned October had gone
up 15%. Anderson pointed out the 15% is an increase over the previous year.
The utility tax budgeted at $4,117,000, with revenue of $4,243,000 - $126,000
to the good. The estimate for 93-94 is $4,200,000. However, Anderson pointed
out with the recent rate case - he thinks the estimate needs to be cut back
to $4,100,000. Commonwealth Edison generates about $2 million of the $4.2
million utility tax.
State income tax is doing pretty well. $2,660,000 budgeted; collection at
$2,870,000. - an increase of $210,00. Why then does it decrease to $2,750,000
'n 93-94? It does because the surcharge expires June 30 and the surcharge
akes up 15% of this distribution from the state. It leaves the City with a
reat year this year - but still has to account for a loss next year.
he surcharge was budgeted at $1.62 million. Believe collection will be
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$1,350,000 - a loss of $270,000. For next year $802,000 - from two sources -
the March, April, May and June distributions of that before it expires i
June and the 9200,000 plus that was the distribution from the excess that wa
collected several years ago.
The real estate transfer tax estimated at $585,000 - will collect $640,000 -
$55,000 to the good. Will go to $600,000 for 93-94. Above budget for this
year, but below collections. Anderson noted the transfer tax is dependent
upon on the number of transfers and prices.
The Liquor tax revenue (5% on restaurant and package goods) budgeted at
$425,000 - will receive $440,00 - $15,000 over estimate, so 93-94 is
increased to $450,000.
Alderman Newman asked how the 5% liquor tax is collected on restaurants? Bob
Shonk explained that restaurants provide a monthly tax return with payment,
gross receipts and it is audited. A list is maintained of licensees.
The municipal hotel tax is 5% of gross receipts on the room bill - the Allen
Center is not included - $340,000 is budgeted and estimated to be collected -
same for next year.
The personal property tax replacement of $328,500 - estimating $336,000 for
collection and the same budgeted for 93-94.
Alderman Rainey asked for an explanation of this tax. Bob Shonk explaine
that when the personal property tax was ruled unconstitutional in 1979, th
General Assembly substituted this tax on corporate incomes for lost revenues
The tax is not on individual incomes. It is collected by the state and is
returned to municipalities on a per capita basis.
Alderman Newman asked if the liquor tax included any projections if beer and
wine were to be sold in grocery stores. Bob Shonk responded that a small
increase was pegged to that, but explained it is hard to project amounts
because it is not known when licenses will go into effect.
Newman referred to a former meeting in which projections of income generated
from the liquor tax were to be made, based on selling liquor in five grocery.
stores. He said he asked for those projections at the time. He said Council
needs to consider what collections might be.
Anderson said a full year of collections is not anticipated. There would be
collections for licenses, which is included elsewhere in the budget.
City Manager Anderson promised a report on that.
State use tax - the state use tax on out-of-state. purchases by Evanston
residents - budgeted at $275,000 - collection at $320,000 - a $45,000
improvement carried forward in 93-94.
Parking taxes - budgeted at $280,000 - collection of $310,000 - $30,000
improvement and carry it into the following year.
The cigarette tax - budgeted at $290,000 and collections the same - budgeter
for 93-94 at $260,000. Anderson noted that there are reductions each year it
the cigarette tax.
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ithletic contests, 11% rate - in 93-94 five football games are planned
stead of four - budgeted at $120,000, expect to collect $120,000 and
estimated at $120,000 which he termed a conservative estimate.
Alderman Drummer thought there should be some increase. He asked if games
played elsewhere generate revenue. City Manager Anderson explained that the
tax only applies to games played within Evanston. Drummer thought another
game should generate more revenue. Drummer also asked if the City can do
anything about games being moved elsewhere so other municipalities collect
the tax. Anderson said the City has no control over those decisions.
Alderman Nelson requested a memo on the cigarette tax addressing the taxes on
cigarettes in adjacent municipalities including Chicago. He said some years
ago taxes were increased on cigarettes generating $600,000 annually, the
majority of Council then voted to lower the tax to help border businesses to
compete with other municipalities. He thought that most other communities had
significantly increased their tax rate. Along with that; Alderman Rainey
requested a spreadsheet that shows the variation of revenues from various
years at 10 cents, 15 cents, and the reduction to ten cents, the effect that
had on sales.
The state revenue shared photo finishing tax - a retail sales tax -
collections down about $25,000. A conservative estimate for next year at
$100,000.
he personal property replacement tax from the library and recreation is the
ame this year and next.
Fire insurance is allocated to the Fire Pension Fund, so it no longer shows.
Alderman Brady noted the potential $100,000 decrease in utility tax revenue
and the need to cut $100,000 from expenditures. Anderson suggested finishing
with revenues first then see where the budget is.
Alderman Drummer requested a memo on how the athletic taxes are calculated.
Alderman Nelson asked if the utility tax goes into the general fund? Yes. He
also asked for a rationale for the legal basis that authorizes the City to
maintain the utility tax. Bob Shonk stated that Chapter 24, Illinois Revised
Statutes has a allowance for a 5% tax on messages, electricity and natural
gas. Nelson asked if the carrier is obliged to pay or is it a tax on the
user? Shonk replied it's on the utility with the right to pass on to the
user. Nelson asked for a budget memo on the question of. whether when one
implements their own optional system - such as a co -generation system as
opposed to getting power from a utility company, whether or not that statute
is applicable.
Alderman Drummer said it seems the real estate transfer tax has been stable
and each year it has been underestimated. He asked why the projection for
ext year is not higher. Mr. Anderson said one reason is the variation - from
434,000 to $640,000 - can't necessarily predict -that. Tend to be more
conservative when they can't predict. Bob Shonk said who .can say what will
appen next year? These are big ticket items, the economy is not that great;
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while sales have been good this year, he thinks $600,000 is reasonable. T
predict sales precisely is almost impossible.
Alderman Engelman noted that Howard/Hartrey, Main Street Commons and
Washington National had not closed last year. All three are projected to be
sold in the coming year. Were those three items considered when making the
projection for 93-94? Bob Shonk said it was based more on actual results and
the mix of past years that included large ticket items. Shonk said he was
aware of big ticket items, but to answer Engelman's question, he would have
to do an detailed analysis that would take longer than a few weeks.
Alderman Drummer said it looks like the transfer tax projection could be
raised. Bob Shonk cautioned that there are some other items in the budget
that are overly optimistic.
Alderman Washington suggested that when property is sold at a scavenger sale,
that perhaps money could be generated by charging individuals something extra
who are profiting from buying Evanston property. City Manager Anderson said
he knew of no avenue to permit doing this, but would look into it
Licenses and permits. Vehicle licenses -current rate $40.00 per vehicle -
current budget $1.31 million - $1.32 million collected - increased to $1.34
million for next year.
Building permits revenue this year was budgeted at $462,766 - estimate
collection at $750,000 and a conservative estimate of $650,000 for next year
Alderman Drummer asked for a memorandum explaining the huge difference in th
budgeted and the actual. Anderson said that several years of analysis woull
be done including big ticket items.
In response to a question from Alderman Newman, City Manager Anderson said
building permit revenue goes into the general fund and that the revenue is
based upon average collections.
Alderman Nelson asked when doing the building permit memo, to correlate
permits granted to the EAV. It seemed to him that when something is built
new, there is a correlation between the fee and the value of the property.
That means the EAV should increase proportionally - unless it is a building
that doesn't come into the EAV calculation. Such a correlation might be
helpful for any statements Council might wish to address to the Assessor.
Cable franchise fee was budgeted at $210,000 - with collection anticipated at .
$226,500 an increase of $16,500 - proposing $231,000 for next year, 5% on
gross receipts.
Alderman Rainey in reference to building permit fees - noted the proposed
budget figure is based upon an average over time - and thought next year
there will be more projects going on; there has never been a 65,000 square
foot grocery store or a store such as the Target store.- She asked for
analysis of the $650,000 figure; thinks it is low. Anderson said staff would
go back to 90-91 and show collections and big ticket items and take it
forward with what is anticipated. He said routine permits would be separate
from big ticket items in the analysis.
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he liquor permits were budgeted at $113,000 - the estimated actual is the
ame. $225,000 is proposed for 93-94. Based on a calculation five new
licenses. Anderson said actions haven't been taken, it was assumed it would
be done.
Alderman Drummer expressed worry about this projection. He said it has been
projected it at $112,000 over this year. The projection could be too high.
Anderson said potential licensees are very interested. Drummer said it puts
Council in the position to have grant a liquor license to those coming in for
it.
Illinois Bell franchise fee - budgeted at $190,000 - $186,000 collected;
that's a $4,000 loss; $186,000 proposed for 93-94, based upon actual
collections.
Business Licenses budgeted at $128,420 with $115,000 collected - down
$13,420. $115,000 proposed for 93-94
Alderman Brady asked if Council were to pass fee for signs ordinance, would
that be under business licenses. Anderson said it would be under sign and
awning permits or a new line would be created for it.
Rooming house licenses - budgeted at $90,498 with the same collected -
$90,211 proposed based upon 104 buildings at $75 each and 868 rooms at $12
each.
lectrical permits - budgeted at $55,000 and will collect $75,000 - $20,000
increase. Budgeted at $80,000 for next year. Collections in two previous
years were $80,000.
Alderman Rainey asked someone to explain the rationale for projecting excess
electrical permit fees and at the same projecting a decrease in building
permit fees. Mr. Anderson said that both had increased. She emphasized she
was interested in the thinking behind the projections.
Long term care licenses were budgeted at $67,930 and will receive $50,000 -
down almost $18,000. Next year proposed at $71,100.
The reason for that is two new facilities are going into operation - estimate
14 facilities at $300 each; 2230 beds at $30 a bed.
Alderman Davis asked what the variable is during the year that results in a
loss that the City does not know about? Mr. Anderson cited one facility was
closed for renovation, may have fewer beds during such a time. He said there
has been some variation from year to year and he does not know the reasons
for it.
Combustion equipment permits budgeted at $50,000, will collect $60,000 for
$10,000 increase. $65,000 proposed for 93-94.
The Centel System budgeted at $60,000 with an annual accelerator; will
receive $'69,010 an increase of $9,000; $65,000 proposed for next year.
Alderman Rainey requested an analysis of those costs since the agreement was
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generated over time - what was projected they should pay and what the
actually paid and an explanation of the accelerator. Bob Shonk said th
accelerator was based upon a published economic indicator. A memo will b
prepared.
Alderman Nelson in reference to combustion equipment permits said he
understood that when engaging in co -generation, it is done by burning natural
gas - that's a combustion device, maybe that could be explored.
Alderman Heydemann asked to include how co -generation would affect total
revenue to the City. Alderman Nelson asked that .as part of that memo, to
explore the rationale for imposing an appropriate fee - because there is an
imposition on citizens located where the combustion is taking place -
pollution. It's in essence a pollution tax.
Plumbing permits were budgeted at $50,000 with $60,000 collected - an
increase of $10,000. $55,000 proposed for next year. Mr. Anderson said that
one would be looked at also.
Elevator permits has $46,000 budgeted and collected with, $50,000 proposed for
93-94.
Residential parking permits budgeted at $45,000 with $28,000 collected - down
$17,000. $50,OOO proposed for 93-94.
Alderman Drummer asked for an explanation of the shortfall; recalled that
last year Council enacted an ordinance that requires everyone to buy
parking permit for $10 instead of the $6 residential only parking permit.
The estimate was provided by the Traffic Engineer and a memo will bl,
prepared.
Alderman Nelson recalled that staff was going to explore the concept of
providing permits or tags where the permit would be sold and permit someone
to park without paying in meters. The omnibus parking permit, parking pass
for lots.
Other permits - $45,000 budgeted; $46,000 collected - up by $1,000. $45,700
proposed, the same as collected in the two prior years.
Contractors' licenses - $28,000 budgeted; $25,000 received - down $3,000.
$26,000 proposed for next year
Farmer's market licenses - budgeted at $7,200; $7,000 collected. $7,200
proposed based on 36 farmers stalls.
Alderman Drummer said that restaurant licenses are proposed to increase. Is
that reflected in business licenses in the budget? Bob Shonk said it would
generate $4,000 if it were to pass.
Alderman Moran referring to liquor permits asked for a memo that identifies
the stores eligible for these permits and if possible -some analysis in
relation to sales tax receipts and perhaps some assessment of what it would
mean in terms of increases in revenue to them if they had'a license to sel
beer and wine.
lderman Rainey asked if the $225,000 projected for liquor license fees
ncludes the proposed grocery on Howard and Sam's Warehouse licenses. She
pointed out there has been no discussion of what the fee should be. Mr.
Anderson said that those projects would not be licensed before 1994 and the
projection includes only the five grocery stores. Mr. Anderson said there had
been discussion of proposed fees in the proposed ordinances which were tabled
- with fees of $25,000 or $35,000.
Ticket fines budgeted at $1.43 million and the same collected. Proposed $1.45
million for next year, based on the new enforcement program
Regular fines budgeted for $140,000 and the same collected. Propose $152,000
for next year.
Alderman Rainey asked what regular fines are? Mr. Anderson described them as
speeding tickets as opposed to parking tickets. Ticket fines are parking
fines.
False alarm fines budgeted at $35,000 with $40,000 collected - a $5,000
increase. $72,100 proposed for next year, estimated by Fire Chief Hunt.
Alderman Rainey said a concern of the A& PW Committee with Chief Berkowsky
was getting a handle on false alarms. She hoped they were not projecting an
increase in the number of false alarms. Chief Hunt said they are projecting
an increase in the fines, and a decrease in calls.
arking boot fines budgeted at $40,000 with $60,000 collected - an increase
f $20,000. $40,000 proposed for next year. Mr. Anderson said there would be
d hump in collections this year because of enforcement and booting going on.
There will be a compression of collections brought in by the new program, but
once brought in, collections will go back to former levels.
Permit penalty fees - almost $11,000 budgeted - $12,000 received. A thousand
dollars in excess. Estimating $15,000 for the following year.
Service fees - Recycling program surcharge budgeted at $221,400 and the same
received. $222,600 proposed for next year based upon 18,550 units at a dollar
a month.
Emergency medical service - budgeted at $140,000, with $132,000 collected. A
shortfall of $8,000. $220,000 is proposed for next year. The proposed budget
assumes a rate change from $100 per call to,$150 for residents and $225 for
non-residents.
Alderman Rainey asked for a report on how much of this is collected through
insurance companies.
Recycling program revenues were budgeted at nearly $515,000. $125,000 has
been collected - creating a shortfall of almost $390,000. $180,000 proposed
for next year.
Alderman Brady"said this is one of the most startling figures in the budget
onsidering community interest in this program. She asked for a significant
emo, which could be used as a marketing tool-, to try and up the revenue
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ollection. She said Council needs to spend time on it because Council needs
understand what has been done and where Council is going with it.
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Public Works Director David Barber said the quarterly report is being pu
together now and will be available at the second meeting in January that,wila
give more information on the recycling center. He said there would be a
adjustment based on the last few months at the center.
Alderman Rainey asked for a comparison to the experience of other communities
be included in this report - relating to the difficulties in marketing and
collecting, getting good prices. Mr. Barber said no other community has such
a center, but he indicated he would get information from the Department of
Energy and Natural Resources that get reports from agencies, which he thought
would be the most comprehensive.
Alderman Warshaw asked for an overall idea of where the recycling is going,
including the cost of the capital improvement over a period of time, the
savings in landfill costs and why the initial estimates prior to constructing
the building were so optimistic as opposed to reality.
Alderman Wollin asked if that included participation of commercial
collections which are kept separate. Barber indicated that information would
be included.
Birth and death records budgeted at $140,000 with $130,000 collected - a
shortfall of $10,000. $140,000 proposed for next year, based on experience.
Ladd •Arboretum Committee budgeted at $122,763; $110,000 received - for a
shortfall of $12,763. $129,900 is proposed. That's Potawatomi Day Camp and
sale of bird seed and such from the Ecology Center.
Alderman Wollin said if there is a decrease, why is an increase projected
Bob Shonk said $40,000 was from Potawatomi Day Camp and the balance fro:
sales at the Ecology Center. Don Wirth, Director of Parks, Forestry an
Recreation said in previous years some of the revenue was retained by the
Recreation Department for registration activities.
State highway maintenance budgeted at $107,000 and will collect that:
$120,000 is proposed for 93-94.
Sale of yard waste bags - almost $173,000 budgeted and $115,000 collected -
creating a shortfall of almost $58,000. $120,000 projected for next year.
That's an assumption based on sales of 150,000 bags at 80,cents a bag.
Alderman Drummer asked for a memorandum on this. He thought a lot of it was
resulting from letting residents rake leaves to the curb. He had many
complaints about leaves and where they were left. He thought there had to be
an increase in labor costs to pick them up. He asked to know where the City
is. Public Works Director Barber said yard waste bags sales during the fall
were excellent. The problem was in the first part of the summer when the
weather was extremely dry - there was less demand for bags. Another factor he
cited was the sale of yard waste carts - people are starting to use them,
thus cutting into yard waste bag sales.
Alderman Davis expressed concern that people really know about the change in
their ability to handle leaves; thought this projection may be high.
Mr. Barber said that part of the sanitation report being prepared will be
figures for the entire year for all components collected in the solid wast
program. That will includes figures on curbside pickup as well as bagge
leaves.
Alderman Rainey asked Council to revisit leaves. She commented that th
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reets look awful in some parts of town due to leaves. She wants to look at
at and asked for information on the cost of yard waste bags. She wants the
price the City sells them for to be reconsidered. She thinks people would be
willing to use the bags if the price is reduced. This would be offset by the
decrease in effort made by the Sanitation department to use equipment to
clean up the mess.
Alderman Lanyon asked if this projection includes the sale,of stickers? Yes.
Lanyon said the problem wasn't people putting them in the gutter. It was when
leaves were pushed to the end of the block, allowed to sit, then there was
cold, rainy weather, so they became difficult to pick up. The problem is in
the management of the program.
Mr. Barber said the cost of each bag is currently 24 cents and they are sold
for 80 cents, so the City gets 50 cents per bag. Vendors sell them for 80
cents with no markup by vendors.
Lanyon thought that people were finding other ways to dispose of their yard
waste on site.
Senior taxicab coupon sales budgeted at $84,500 - with $79,000 collected. A
shortfall of $5,500. Estimating $84,500 for next year. $68,000 comes from
fees paid by participants. $16,500 comes from the Township.
Zoning fees budgeted at $35,000 - estimated collection of $45,000 - an
increase of $10,000. $40,000 proposed for next year.
larm panel subscription fees budgeted at $19,500 - estimated collection of
21,000 - an overage of $1,500. $24,000 proposed for next year.
Health service charges to other municipalities - budgeted at $20,984 -
estimated collection of $20,984. $22,000 proposed for next year. Mr.
Anderson said this will not happen. The revenue will have to be modified.
This is the contract with the Village of Glencoe.
Police report fees budgeted at $20,900 - anticipate collecting the same.
$21,500 proposed for next year.
Alderman Nelson asked why Glencoe is not renewing their contract. Mr.
Anderson said the individual in our department that was providing that
service retired and he is providing the service directly to them.
Senior citizen health clinic budgeted for $20,276 this year - $15,300
collected - a shortfall of almost $5,000. $18,400 is projected for next year.
Health Service fees - lab work - fees charged to Northbrook, Kenilworth,
Morton Grove - $10,747 was budgeted - $12,000 received - almost $1300
increase. $12,300 is projected for next year.
Nursing Services budgeted, collected and proposed at $12,000.
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Other service charges budgeted at $38,016 - $16,000 collected - for.
shortfall of $22,000. $12,000 projected for next year. Mr. Anderson said th
City is not making collections anticipated.
Alderman Rainey asked for what those are? Mr. Anderson said a report would
be prepared by the Health Department.
Service fees. Condo conversion application budgeted and collected at $5,000.
$10,000 proposed for next year.
Alderman Warshaw wondered if the proposed fees were based on knowledge. Bob
Shonk said condo conversions are hard to predict - they fluctuate. This was
keyed off of the 1991 actual. Mr. Anderson said that the three year history
shows revenues at $5,000, $10,000 and $20,000.
Alderman Rainey asked if the condo conversion fee and the conversion
application fee are commensurate with work being performed. Are the fees
appropriate? Mr. Anderson said the fee is $100 per unit.
Alderman Davis asked why there is any revenue in alley light revenue. Mr.
Anderson said the reduction is because Com Ed is not doing collections. Bob
Shonk said he was not sure why the amount was included. It will be
identified.
Revenue from other agencies - Evanston Township - Purchase Service Grant -
Mr. Anderson said here is a revenue that has not appeared in any other year -
a transfer from the Town Fund of $500,000 to the General Fund. Details have
not been established by the Township Committee.
Emergency assistance budgeted at $78,000 - $114,000 will be transferred fro'
the Township. $112,000 is proposed to be transferred from the Township for
next year.
Title XX family planning budgeted at $82,500, the same amount collected.
$82,500 is proposed for next year.
Arts Council grants - collecting $6700 more than the $67,400 budgeted.
$81,000 proposed for next year.
Mayor pro tem Esch asked what the S.L.I.A. Grant is? Mr. Anderson said they
would get an answer.
Alderman Rainey asked if the City is not getting revenue from FEMA. Mr.
Anderson said he thought it was because they have modified their distribution
of funds. She asked if it was coming in different ways or under another
cover. Bob Shonk said that a memo he got indicated the funds were going
directly to Neighbors at Work. She asked where the money went - through
emergency assistance or to the shelter. A memo will address this.
Reimbursement from other funds.
Alderman Newman asked for clarification on the transfer of $1.3 million from
the Parking Fund Surplus Revenue for 92-93 - does this represent a transfer,
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rom the Parking Fund to the General Fund? Yes. If the transfer had not been
ade last year, would the increase in meter fees in the downtown be necessary
this year? Yes. Alderman Newman said he was told raising the meter fees in
downtown would generate $500,000.
Mr. Anderson said raising meter fees would generate an additional $571,000 in
revenue. Alderman Newman said by transferring last year, it necessitated the
increase in parking rates this year. Mr. Anderson said the principle involved
in the enterprise funds is that revenue should equal expenditures. If you
begin to take out a surplus to underwrite expenditures, what you are doing is
getting yourself in the shape the City is trying to get itself out of now.
It's elimination of the use of one time revenues. Newman said there were a
lot of transfers to the General Fund, but there was no talk about the
implication of those transfers on the other funds. Alderman Newman said that
because of the transfer last year, meter rates will have to be raised this
year and parking rates are important to the economic base that generates tax
revenue. A member on Economic Development pointed out that when Sam's is
opened out west, that Sam's is going to compete with the downtown; so is
Howard/Hartrey. What the Council is doing is subsidizing those developments
that have free parking and at the same time raising meter rates in the
downtown, putting downtown businesses at an additional disadvantage. Alderman
Newman suggested this is not good public policy - and not good for the
downtown businessman. He thought it could have been avoided. Newman suggests
that Council must come up with some alternatives - look seriously at the
roposed rates. The City's policies are making it more difficult for the
owntown to exist. He noted the Water Fund is going to go up 17% and 20% in
uture years - these are tax increases - making it more expensive to be in
vanston.
Mr. Anderson said last year's budget message indicated there would be a 40%
increase in the Water Fund rates at the end of the next fiscal year. Also he
remembered a comment regarding a potential property tax rate increase. The
decision was made to make the transfer rather than raising the tax rate. The
flow of the funds would not eliminate the need for an increase in parking
rates - it would only postpone it.
Alderman Newman said may be it would postpone it, but Council would have time
to react. He thought raising the parking fees a serious matter. He would
like to have known last year that transferring the $1.3 million meant that
this year. Mr. Anderson pointed out it was in the budget message.
Alderman Newman stated if the Council had two years, it could buy some time.
He thought it would hurt businesses - that people will not go downtown
because the parking costs more or go to the west side where they can park
free.
Alderman Rainey said the A&PW Committee referred the increases in downtown
parking rates to the Mayor's Special Parking Committee - and no decision has
been made. She invited Alderman Newman to attend the next.committee meeting
Tuesday.
Alderman Nelson recalled that the increases were postponed a year ago by
transferring funds and said that ultimately some things will have to be cut.
One of the approaches would be to increase the volume of spaces available.
nstead of doubling the cost of space, increase the number of spaces - change
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the arrangement - instead of having parallel parking have diagonal parking
There are a lot of alternatives. There are different solutions to differen`
problems. Every time money is moved from one fund to another, you will pay
in the long run - judgement day is just being deferred. This is no surprise.
Alderman Brady asked under miscellaneous revenue, what the payment -in -lieu -
of -taxes was for. Budgeted at $114,000 - will collect $143,000 - budgeted at
$38, 500 for next year. Bob Shonk responded that next year after the first
quarter, the new professional building on Central Street, hopefully will be
occupied and this represents three or four months of payment until that time.
Alderman Washington asked where the sickle cell grant goes? What is the money
used for? Is it for education or treatment? Mr. Anderson said,a memo from
the Health Director would be forthcoming:
Alderman Rainey asked for a budget memo on what the projected $38,500
payment -in -lieu -of -taxes includes.
She said one of the explanations for water revenues is that the lawsuit
pending has resulted in the commission paying the lower and not the increased
water rate. She requested an analysis of what Evanston would have collected
if they were paying the full rate?
Bob Shonk responded that the Northwest Water Commission would have been
paying around $2.75 million. Right now they `are paying in cash $1.24
million. She questioned the difference between the rate they are paying an
the rate they are not paying - the increased rate. She referred to a mein
regarding the water fund and the Northwest Water Commission lawsuit
Customers are paying the lower rate, as opposed to the higher rate. Mr
Shonk said the Commission pays Evanston annually about $500,000 less than we
would calculate. She asked when is the matter expected to be resolved?
Mr. Anderson said the City would like to see resolution in the next fiscal
year. According to Mr. Shonk, it has been going on almost since the day
Evanston started pumping (February 25, 1985). Mr. Anderson said an
arbitrator had just been selected for that, and work on presentations has
begun.
Under Library other revenues - Alderman Nelson noted films, which he presumed
are video rentals. He said why not since there is not sales tax on video
rentals in Evanston, give all videos to video stores and charge 20 cents per
rental - then the library wouldn't have to administer it - just collect the
money.
Library Director Neal Nye explained the videos in the library collection for
the most part are not items handled by the majority of the video outlets.
Alderman Nelson disagreed with him. He said when he spoke to video store
operators they said if they didn't have it, they would get it. He does not
think there is a gap the library fills.
Alderman Drummer commented that it was strange there is no anticipated loss
of revenues from the temporary library arrangement.
Mr. Nye explained the library anticipates 25% reduction in use. In projecting
revenues, the library projected revenues out of income for this year in th
old facility which was higher than last year's projection - then reduced the:
by 15% to 25%. In addition they project an increase in earnings from cop
machines because new copy machines will be put in the interim site, and those
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achines there now will be placed in the branches. The machines in the
ranches now are provided by a vendor, from which there is no revenue. With
heir removal, income will be generated.
Alderman Drummer asked for a memo on this.
Recreation revenues. In response to a question about special programs from
Alderman Engelman, Don Wirth said as part of reorganization- in the Recreation
Department, there were staff combination and reassignments; used to have a
Leisure Learning Center line item and that has been rolled into this program
primarily due to a staffing change to make it more convenient. Alderman
Engelman asked why under Fleetwood-Jourdain Center, they project an almost
45% increase over what seems to have been received in the last three years.
The projection for the coming year according to Don Wirth, will generate
increased fees through the Fitness Center.
Alderman Heydemann asked on Recreation revenues continued - if the middle
school program, the sports association, the club activities and classes and
arts camp have been redistributed. Don Wirth said some have gone to special
programs, some to recreation centers as part of staff reorganization. The
Evanston Sports Association line item was eliminated and added to the sports
league line item. Alderman Heydemann requested a memo on changes, and what
has gone from the Recreation Department.
Alderman Wollin asked if the beach increase was based on weather. Don Wirth
said the formula used is based on a three year average of beach -revenues.
tlderman Newman said if the Special Parking committee and A&PW Committee
on't approve the increase in meter rates, what actions will Council have to
ake on this budget? Mr. Anderson said they would return with a memorandum
on that.
There was no public comment.
Alderman Nelson moved Council adjourn into CLOSED SESSION. Seconded by
Alderman Drummer. Roll call. Voting aye - Aldermen Nelson,,Wollin, Engelman,
Rainey, Lanyon, Warshaw, Fiske, Newman, Paden, Drummer, Davis, Brady, Esch,
Heydemann, Washington, Kent, Moran. Voting nay - none. Motion carried. (17-0)
The meeting adjourned at 11:31 A.M. and Council took a 15 minute recess.
Council adjourned from CLOSED SESSION at 12:10 P. M.
RESPECTFULLY SUBMITTED,
MARY P. MORRIS,
DEPUTY CITY CLERK
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