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HomeMy WebLinkAboutMINUTES-1994-01-22-19943,M 1 1 CITY COUNCIL O! E V9�`,p C'OOk Lti1�O~ CO. 1 January 22, 1994 A SPECIAL MEETING of the Evanston City Council was held on Saturday, January 22, 1994, at 9:24 A.M. in the City Council Chamber to consider the 1994-1995 City of Evanston Budget. ROLL CALL - PRESENT: Alderman Newman Alderman Drummer Alderman Heydemann Alderman Kent A Quorum being present. ABSENT: None TARDY: Alderman Guthrie PRESIDING: Mayor Lorraine H. Morton Alderman Moran Alderman Engelman Alderman Holsman Alderman Feldman Mayor Morton announced that there would be a Closed Session to discuss the disposition of property. City Manager Anderson announced that there will be a Public Hearing on the proposed budget on Monday, February 7, 1994, at 7:30 P.M. in the Council Chamber. Alderman Drummer moved that Council convene as a Committee of the Whole for the purpose of discussing the proposed budget. Seconded by Alderman Engelman. Motion carried. No nays. REVIEW OF REVENUES: Provertv Taxes: Finance Director Shonk noted that the property tax levy for all fiords the will not change in the 1994-1995 Fiscal 'Year. In response to questions from Aldermen Newman and Engelman, he explained that the reduction in property tax support of the General Fund will be offset by increases in the Debt Service Fund and the Police and Fire Pension Funds. He noted that Council sitting as the Town Board of Trustees reduced the Township tax levy by $1 million. City Manager Anderson explained that the increased property taxes generated by Sam's Warehouse Club would go to support the Tax Increment Financing (M District for that area. A video tape recording of this meeting has been made part of the permanent record and is available in the City Clerk's office. w� 2 January 22, 1994 At this time Alderman Guthrie was present. Sales Tax: While sales taxes for the first eight months appear to be lagging behind projections, Mr. Shonk said that it is anticipated that fiscal year projections will be met. A sizeable increase in sales taxes is projected for next year, based on the revenues that the - City , anticipates A will receive from Sam's. It is too early to tellhow accurate the projections were, because of sales tax from the state lag nearly three months behind collections and the store just opened in November. In response to questions, Assistant City Manager Aiello said that Sam's seemed to be pleased with their first month's receipts and she felt that their sales taxes would meet projections. Income Tax Surcharge: Mr. Shonk explained that the Income Tax Surcharge would only be with us until the end of June and then it will be folded in to the regular income tax as an additional 1/4%. Real Estate Transfer Tax: Mr. Shonk noted that the Real Estate Transfer Tax had exceeded projections because of the sale of several large properties such as the Rust-Oleum site, the Orrington Hotel and the Wal-Mart property, but felt that the City could not expect a similar situation next year. Cigarette Taxes: In response to a question from Alderman Newman, Mr. Shonk explained that receipts for cigarette taxes may not reflect the actual sales for some time to come because Sam's Warehouse purchased a large supply of tax stamps when they opened in November and that supply may last them at least several years. Cable Franchise Fees: In response to a question from Alderman Holsman, City Manager Anderson explained that, even though the City is in the process of renegotiating its franchise agreement, it is not anticipated that there will be an increase in the franchise fee. Penalties and Fines: In response to a question from Mayor Morton, Director of Health and Human Services Terry explained that he had the ability to levy fines for violations of Evanston's Long Term Care Ordinance. Director of Building and Property Services responded to Alderman Holsman that the City did not receive any fines from Building Code violations because the courts were more interested in compliance than punishment. In response to a question from Alderman Engelman, Mr. Shook explained that the City had gone to an outside contractor to collect delinquent emergency medical services fees and it is anticipated that there will.be an increase in collections. Recycling: In response to questions from Alderman Newman, Director of Public Works Barber confirmed that the recycling program was not making money. He said that it had been anticipated that the $1 surcharge for recycling on water bills would cover the net cost of the program, but experience shows that the net cost of the program is closer to $1.30. He noted that there were two recycling costs in the budget, the cost of the program 4, -,, ' , , L,1 by the General Fund and the cost of the Recycling Center supported by the Debt Service Fund. He said that the program is almost at the break-even point if you consider the costs avoided by having fewer materials sent to the landfill. He also noted that most of the people employed at the Recycling Center through the Private Industry Council (PIC) program have come off the welfare rolls and they represent additional costs avoided that have not been figured into the program. Mr. Barber announced that the City was considering going to curbside pick up of recyclables in all area because experience has shown that there is greater participation in the program in areas where the recycling 3 January 22,1994 is picked up on the curbs. In response to a question from Alderman Feldman, Mr. Barber explained that the unit cost of the program has remained the same in spite of the debt service on the roll -out carts and the cost of the recycling center. The program has reduced the City's waste stream by 30 %. In response to a question from Alderman Heydemann, Mr. Barber explained that the City is not accepting cardboard or cereal boxes because there is no market for those materials. He also noted that 10 % of what is received in the recycling center is garbage and not a recyclable. In response to a question from Alderman Newman, Mr. Barber said that Districts 65 and 202 have received grants to develop recycling programs. In response to a question from Alderman Drummer, he explained that 4045 % of citizens participate in the program on a weekly basis and about 80-85 % participate at least once a month and emphasized that compliance is not as good where pickup is in alleys. In response to a question from Mayor Morton, he explained that recycling was a mandated program and it had not been expected to make money. He pointed out, however, that it is the only municipal recycling program to make additional money from external customers. He noted that efforts may need to be made to further educate the community about recycling. He did not believe that it was possible for the program to make money unless everyone participated and felt that everyone would not participate unless it was made mandatory. In response to additional questions from aldermen, Mr. Barber said that the Recycling Center has sufficient staff to handle everything that comes in. He also said that the program has not been expanded to larger apartment units because owners of those buildings have not demonstrated any interest in paying for the cost of such a service. Dama¢e to Citv Proverty: First Assistant Corporation Counsel Hill explained that the estimated receipts for this fund have increased because the City has set up a cost recovery program that makes a concerted effort to recover City costs when there is damage to City property. City Manager Anderson also explained that if there is a hazardous material spill or an accident, such as a construction crane tipping over, the City is attempting to recover the costs of responding to situations like that. In the last few months, insurers have shown a willingness to pay for these costs. Mr. Terry pointed out that the Emergency Assistance Program received reimbursement from the insurance company for their response after the recent fire at Sherman Gardens. Pavment-in-Lieu-of-Taxes: In response to a question from Alderman Holsman, Mr. Shonk explained that the estimates of this revenue have declined because the City is no longer receiving payments -in -lieu -of -taxes from Evanston Hospital because the new medical building on Central Street is complete. The doctors for whom the hospital was paying the payments -in -lieu - of -taxes have moved into that building and are no longer practicing on tax exempt property. North Branch Library: In response to questions from Alderman Holsman, Mr. Shonk explained that the City owns the building that houses the North Branch Library and leases the other half (about 2500 square feet) to a travel agency, which has a two year lease. The last mortgage payment on the property will be made in 1999. Recreation Revenues: Director of Parks and Recreation Wirth clarified for Alderman Holsman that estimated revenues at the Robert Crown Center are expected to increase, with most of that increase coming from concessions. He also explained that the department felt it had not done a good job marketing the Fleetwood Jourdain Theater this year and expect to do a better job in the coming year. Alderman Feldman moved to recess into Closed Session to discuss disposition of property. Seconded by Alderman Heydemann. Roll call. Voting aye - Guthrie, Heydemann, Kent, Moran, Engelman, Holsman, Feldman, Newman and Drummer. Motion carried (9-0). The Council recessed into Closed Session at 10:28 A.M. and reconvened into Open Session at 10:56 A.M. v 4 January 22, 1994 A&et Memos - Ouestions and Reauests For. Alderman Feldman requested more detail about the securitv Dolicv of the library. what standards natrons would be expected to meet and what behaviors would be deemed tmacceotable in the librarv. Alderman Newman reauested a budget memo about whether the oronosals Dut forth in memos from the Fire Department were different from those in the Capital Improvement Program. what monev has been allocated for fire station renovation/building in Drior vears. what is Dronosed to be done at each station and what is the Droiected cost. Alderman Engelman requested that the Citv allocate $250.000 to Research Park Incomorated (RPD. rather than the $200.000 in the mumned budget and that this proposal be added to Budget Memo #17 - Budget Adiustments. Alderman Heydemann asked for information on what had been done to market those businesses west of Dodge Avenue that have been impacted by the Main Street sewer project. Mr. Barber explained that marketing of the businesses in that area had been done. The City issued additional newsletters and put up signs directing people to those businesses. He noted that marketing that area had been difficult because of the uncertainty with completion dates. He said that Main Street is expected to be open in three weeks, but will be closed again for a short time to repair the intersection at Main and Dodge. He also noted that the sewer line on Main Street needs some work, but said that the street will not be dug up again this year. Alderman Drummer said that much of the Commercial/Industrial area north of Main Street is an eyesore. Assistant City Manager Aiello said that there would be CD and economic development money available to deal with that problem. Alderman Engelman said that after the Economic Development Committee completes its comprehensive review of the Research Park, it will turn its attention to the neighborhoods. Alderman Newman reuuested a budget memo about the amount of monev Districts 65 and 202 vav in utilitv taxes and asked whether the Citv can legally exemot them from the nronosed new utilitv taxes. In response to a question, City Manager Anderson clarified that when Council votes to approve the CIP, it only votes to commit the money for the first year of the program. It does not approve expenditures beyond the first year, because those proposals in Year 2-5 are still conceptual and may be changed or moved to different years. Mayor Morton noted that the meeting had begun somewhat late and requested that everyone be more prompt for the next meeting. There being no further business to come before the Council, Mayor Morton asked for a motion to adjourn. The Council so moved and adjourned at 11:13 A.M. KIRSTEN F. DAVIS CITY CLERK