Chambana Sun

Woodstock City Council met Friday, Jan. 13.

MINUTES

WOODSTOCK CITY COUNCIL

SPECIAL BUDGET WORKSHOP

January 13, 2017

City Council Chambers

The Special City Council Budget Workshop of the Woodstock City Council was called to order at 3:00 PM by Mayor Brian Sager on Tuesday, January 13, 2017 at Stage Left Café. The Agenda for this Special Meeting was posted no less than 48 hours in advance of the meeting and the Media and all Council members were notified of the meeting.

Mayor Sager stated that the purpose of this meeting is a preliminary discussion of the budget. He noted this is a normal meeting Council holds this time of year to begin the process of formulation of the budget for the coming fiscal year. He stated the Lighting of the Square is also on the agenda for discussion at this workshop session. He stated as this is a workshop, it will be conducted in a more informal manner and invited and encouraged participation by all present.

COUNCIL MEMBERS PRESENT: Daniel Hart, Maureen Larson, Mark Saladin, RB Thompson, Michael Turner, and Mayor Brian Sager. Joseph Starzynski arrived at 3:18 PM.

COUNCIL MEMBERS ABSENT: None

STAFF PRESENT: City Manager Roscoe Stelford, Assistant City Manager/Finance Director Paul Christensen, Economic Development Director Garrett Anderson, Building and Zoning Director Joe Napolitano, Public Works Director Jeff Van Landuyt, Human Resources Director Debbie Schooner, Police Chief John Lieb, Recreation Director Dave Zinnen, Opera House Director John Scharres, Assistant Public Works Director Tom Migatz, Parks Superintendent Ernie Nelson, Economic Development Coordinator Krista Coltrin, IT Manager Dan McElmeel, and Grant Writer Terry Willcockson.

OTHERS PRESENT: City Clerk Cindy Smiley, Gordon Tebo, City Council Candidate, and Mike Wozny, Manager, Classic Cinemas Woodstock.

DISCUSSION ITEMS:

1. Lighting of the Square Event

Mayor Sager stated there have been some comments made concerning this event and Staff has provided a review and summary in the packet for this Workshop.

R. Stelford stated Staff met with Mayor Sager about how to improve this event and noted costs for these improvements are provided in the agenda packet. He noted these improvements are specifically to add lighting and switch to LED lighting, stating the increased power needs of these improvements must also be considered in the discussion and an estimate of these has also been provided. Mr. Stelford called attention to the table provided, breaking down the costs to add various levels of lighting to the Square. He stated Staff does have some concern about the impact increased lighting will have on the trees in the Park in the Square and requested Public Works Jeff Van Landuyt to explain these concerns.

J. VanLanduyt stated the trees are stressed to begin with for a number of reasons including the pavement in the Park and the poor quality of the soils. Mr. Van Landuyt also noted Staff is concerned if the larger trees would die, it would be impossible to replace them with similar-size trees which would greatly affect the ambiance of the Square.

Concerning power availability, Mr. Van Landuyt stated he does not believe the current distribution of power available in the Park in the Square is conducive to lighting more trees so work will have to be done on the system to accommodate these needs.

Mr. Van Landuyt noted that LED lights take less power, but opined this is not a necessity. He stated LED lights cost more and have many advantages, but noted Woodstock cannot re-use lights because they are cut off the trees making longevity unnecessary and the added cost a waste. He opined the City should continue using incandescent lights.

Mr. Van Landuyt stated he believes the City can and should do more lighting, but encouraged Council to be cautious. He noted the City will be changing the fixtures in the Park in the Square to LED which will free up more power and provide more flexibility for tree lighting.

Mr. Stelford encouraged Council to give Staff an idea of the amount it would like to see in the next fiscal year budget for lighting improvements.

Mayor Sager opened the floor to the City Council.

M. Turner stated he does not support changing to LED lighting which will be cut down and then repurchased each year. He stated he does support putting up as many lights as possible, with at least as many as last year, but noted the City should consider the health of each tree when making its decision.

He noted, while well-attended, many people leave after the lighting and opined the City should do more to keep them on the Square to provide more economic impact from this event.

M. Larson noted that there are a lot of people on the perimeter of the Square and her wish to make sure they are more involved in the event. She stated she, too, is not supportive of switching to LED lighting, opining the incandescent lights complement the historic nature of the Square. Councilwoman Larson stated she would like to see a few more trees lit if possible, but does not wish to harm the trees. She asked Staff to investigate if it is possible to light the spaces between the trees.

M. Saladin discussed wrapping the trees and the effect this has, opining a few of the trees should be wrapped. He stated he also receives positive comments concerning the tree in front of City Hall.

D. Hart opined the City should not do less than last year, but he stated he does not favor spending more money or changing to LED lights.

RB Thompson drew attention to the map of the Square provided in the Staff report and discussed what trees could be lit including some of the interior trees. He stated care should be taken to not damage the trees and encouraged lighting of the trees in the corner bump-outs.

In response to a question from Councilman Starzynski, J. Scharres estimated there were approximately 3,000 attendees at the event this year. Mr. Starzynski stated the City should put on a good show for this event and funds for additional lighting, which will draw more people, would be money well spent.

Mayor Sager stated the Lighting of the Square is an opportunity to bring people to Woodstock. He stated the Square is the center focus of the event and the City should be proud of it. Mayor Sager noted this event is also the opportunity for the merchants to jump start the holiday season, noting several businesses have stated it is the biggest day of the year.

Mayor Sager stated he has been advocating for more lights on the Square for the past ten years and noted his support of increasing the number of trees lit, wrapping the trunks, and investigating other ways to enhance the Lighting event. He also stated his support of the current incandescent lights over LED. Mayor Sager stated the question is, does the City have the funds to do this?

Mayor Sager complimented J. Scharres on the building lights.

A brief discussion followed of what other communities are doing to draw people on this day.

D. Hart suggested approaching the businesses with the opportunity to sponsor certain trees.

J. Scharres noted there are many shrubs and bushes in the Park in the Square, such as those surrounding the bandstand, and in other areas on the Square and suggested using incandescent net lighting on these. He stated this would get the lighting more down to the people and expand it around the Square. J. Van Landuyt opined it would be easy to replace these shrubs, should they be damaged.

Mayor Sager expressed support of this idea noting this would complement the lighting of the smaller trees and the trees in the bump outs.

Mark Saladin stated if the City stays with incandescent lighting, lighting 20 more trees would cost approximately $50,000. In response to a question from M. Larson, Mr. Van Landuyt noted that wrapping the trees would double the cost. In response to further questioning concerning wrapping, Mr.

Van Landuyt stated it would be less to wrap the trunks only. He noted there is sometimes a problem with people unplugging the lights but stated the new park rules have somewhat mitigated this and opined Public Works could figure something out.

Following further discussion of various proposed lighting scenarios and the costs involved, Mayor Sager noted it seems that Council would like to have more discussion and more information from Staff as to what could be done with a high level and a lower level of funding.

Councilwoman Larson again noted she would like to further investigate overhead lighting. In response to a question from M. Saladin, R. Stelford affirmed that the City could accept sponsorships for the lighting.

In response to a question from Mayor Sager, it was the consensus of the City Council that increasing the Park in the Square lighting should be further discussed and investigated. Further, it was the consensus of the Council that $50,000 be placed as a preliminary figure for budget preparation for the next fiscal year as a temporary “place holder” noting this is not a statement of approval and is dependent upon further discussion, investigation, and final budget approval.

Mayor Sager noted there are three other items for discussion concerning the Lighting of the Square. First, should a portion of the Square be closed for the event; second, improvement of the sound system; and third, should booths be placed in the sidewalk area to enhance the event.

Addressing the sound system first, it was noted that it may not be practical to upgrade the whole thing, but because of the size and number of people attending the Lighting of the Square, it is difficult for everyone to hear. It was opined perhaps the answer would be to subcontract for that event. City Manager Stelford noted it is estimated that it would cost $2,500 to subcontract for a sound system and stated it is important to book now if Council wishes to proceed for this year.

Following further discussion during which it was noted that it is important for the attendees to hear, it was the consensus of the City Council to place funds in the FY17/18 Budget for a sound system for the 2017 Lighting of the Square. It was noted that there will be additional meetings, including a Public Hearing, prior to formal approval of the FY17/18 Budget.

Discussion turned to closure of a portion of the Square for the event and placement of booths on the sidewalks.

M. Larson stated she would like to defer a decision until receiving input of the business owners.

R. Stelford stated the business owners were notified of this discussion and invited to this meeting to participate. He noted the presence of Mr. Mike Wozny, representing Classic Cinemas Woodstock.

Mr. Wozny stated his concern that if the Lighting of the Square is expanded it would greatly impact the theater’s revenue. He noted that is the theater’s biggest day and parking is already an issue. He stated people are unable to get to their cars when the movies are over, noting this is an unsafe situation. He suggested providing parking at remote lots and bringing people in via shuttles. He stated there is also an issue because there are no public restrooms available to event-goers with many of them coming into the theater to use the facilities.

Economic Development Coordinator Krista Coltrin stated this was discussed at one of the business owners’ meetings and further stated there was consensus from the business owners about closing the streets and many supported a shuttle service. She stated they also felt bathrooms were an issue.

Discussion followed of the need for restrooms and security issues with event-goers using the bathrooms of the Square businesses. Ms. Coltrin noted that many of the buildings on the Square are old with older plumbing that will not support the large crowds. Councilman Hart stated he did not see issues at his business noting that event-goers come in to use the restrooms and also to use his building as a waiting area. He stated this is just expected, noting it is one of his biggest days of the year.

Mayor Sager noted there doesn’t seem to be a huge call to expand to a lot of additional activities or additional hours, stating perhaps there could be some limited added activities such as hot chocolate.

In response to a question from Mayor Sager concerning closure of the streets, Councilman Turner suggested a controlled approach closing a portion of the Square and erecting a tent with heaters and portable toilets to encourage people to stay and shop more. He stated he is open to expanding the activities after the Lighting.

Mayor Sager noted this is a City-sponsored event stating there is not a lot of additional manpower available to add more to the event.

In response to a question from Mayor Sager, it was the consensus of the City Council that it may be appropriate to look at partial closure of the Square.

2. Development of FY17/18 Budget

City Manager Stelford stated Staff has already looked at the Budget and developed some preliminary budget calculations. He noted included in the Council packet is some information about some possible changes as a result of the City attaining Home Rule status. He called on Mr. Christensen to present.

Mr. Christensen discussed property tax revenue noting an increase from new growth only of $56,340.

He emphasized this increase is generated solely from new growth in the City, as the City Council for the sixth consecutive year again did not take PTELL. He then discussed the changes which need to be absorbed including increases or funding needs in the Police Pension Fund, Public Library, and the Liability Insurance Fund. Mr. Christensen stated the overall impact is a ($317,000) net reduction in the General Fund compared to FY16/17. Discussion followed of these changes and their cause.

Mr. Christensen stated even with the previously-discussed information, it is still his belief the City can have a balanced budget with net reductions covered by re-evaluating and eliminating open positions and holding expenses to the same level as budgeted last year. Discussion followed regarding personnel including the number of employees, collective bargaining, and how pay increases are calculated.

Mr. Christensen then discussed the General Corporate - Capital Improvement Program (CIP) Fund noting $750,000 of CIP Reserves was budgeted to be utilized in FY16/17. He stated the General Fund CIP projects that have been given a Grade A for FY17/18 would cost $3,988,000, which does not include roads. He stated approximately $1.75 million will be needed for road repaving which is $800,000 more than currently budgeted. He noted there is $17.8 million worth of Grade A projects over the next five-year planning period in the General Fund CIP. He stated the City will not be able to fund all of these projects, noting they are for infrastructure projects, not including roads. Discussion followed of road repaving and roadway improvements, including how many miles of roadway can be repaved.

Discussion turned to the City’s overall revenue mix with Mr. Christensen noting when preparing the presentation for this workshop, City Staff looked at taxes and revenues solely impacting the City’s residents and businesses including property taxes, telecommunication taxes, and wireless alarm fees.

Noting Council’s wish to decrease property taxes, if possible, Mr. Christensen called attention to the table included in the packet, which provided information on possible of levy decrease percentages and corresponding dollar amounts this would have on residents’ property tax bills. The table also included the dollar amount each percentage would decrease revenue. Mayor Sager noted according to the table, a 1% property tax levy reduction would result in a property tax decrease of $7.58 on a $125,000 home and a $23.54 property tax decrease on a $350,000 home. He emphasized a property tax levy decrease implemented by the City would impact only the City’s portion of a property owner’s tax bill.

The discussion turned to video gaming revenue with Mr. Christensen reviewing the number of video gaming licenses and the number of gaming terminals currently allowed in the City. He also noted the City’s past Resolution which directs the City’s proceeds from video gaming to be used for quality of life, marketing efforts, and enterprise zone administrative costs.

Mr. Christensen provided information on the current fee structure for video gaming licenses which is the maximum that could be implemented as a non-Home Rule community. He then provided information on the fee structure currently imposed by neighboring Home Rule communities.

Discussion followed of the City’s ability to increase the business application fee and the per machine fee, and also implementation of a video gaming operator application fee now that Woodstock has achieved Home Rule status. Various fee levels were discussed, including the increased revenue that would result with their implementation. It was noted this additional revenue would be used to offset police costs.

Discussion then turned to the Wireless Fund with Mr. Christensen providing information on the current fees, the amount of revenue generated, and what these funds are used for. He provided three different fee reduction options and the corresponding business savings and revenue loss to the City. Mr. Christensen noted while some reduction can be made, it is advisable to maintain some reserve in this fund as the system must be upgraded. Further discussion ensued of the three options and how the fees are determined for various types and sizes of businesses.

Mr. Christensen then provided information on Sales Tax as a portion of the City’s revenue mix. He stated the City’s current Sales Tax Rate is 1% which is estimated to bring in $4.2 million in FY17/18.

He stated a Home Rule Community is allowed to collect an additional sales tax, if it chooses, but that this sales tax cannot be imposed on tangible personal property, food (with the exception of alcoholic beverages, soft drinks and food for immediate consumption), and prescription and non-prescription medicines. Mr. Christensen provided information concerning the Home Rule Sales Tax imposed and collected by neighboring Home Rule Communities, ranging from an additional.50% to an additional 1.00%, which provides an additional $1.3 million to $5.0 million in revenue to those communities. He provided an estimate of the revenue that could be collected by the City with the imposition of various Home Rule Tax Rates of 0.25% to 1.0% with the corresponding additional revenue of $630,000 to $2.5 million.

Mr. Christensen then provided examples of how the City Council could provide property tax relief to the City’s taxpayers by using various revenue mix scenarios.

Mayor Sager noted Staff has provided these scenarios for the Council to focus on as it considers the proper level of revenue to offset increasing costs in insurance, personnel expenses, and the Police Pension Fund and also as a result of the Council’s wish to decrease the property tax burden on the residents. He summarized that Staff has offered 18 different options that include various levels of property tax levy reductions while looking at different mixes of the three previously-identified items, noting the revenue change with each of the options. He reminded those present that the City has not imposed the PTELL for the last five years which has provided property tax relief on the City’s portion of the residents’ tax bills. He urged the Councilmembers to take a close look at these options while also considering the City’s needs in terms of street improvements and capital improvements.

Mayor Sager stated that sales tax is divided among not only residents, but among all who come into the community. He noted Staff is requesting direction concerning the revenue mix desired by Council so that preliminary budget figures may be prepared for additional discussion and consideration by Council.

A discussion ensued of the various options with each Council member providing opinions as to which option is preferred. M. Turner urged Staff to look at not only the revenue side, but also to consider expenditures. R. Stelford stated expenditures have been greatly reduced over the past few years, noting there are no large expenditures left on the table that would not adversely impact services. He stated Staff continues to look at improving efficiencies, which will impact the budget positively. Mr. Christensen stated Staff is constantly looking at ways to reduce costs and has already worked to absorb revenue losses, but that the budget will not support many more losses without adversely impacting services.

Councilman Saladin opined the City may already be operating on the “lean” side. He stated it is easy to compare the City’s property taxes with other communities or other states but there are other expenses that people must look at. He reminded those present that only 16% of a resident’s property tax bill can be attributed to the City of Woodstock. He stated, even so, he would like to affect property tax relief for the residents, noting the impact would be much greater if all taxing bodies would take like action. He stated he would like to see the greatest impact the City can make on the residents’ property tax bill, while being comparable with other communities on sales tax.

Councilman Turner stated he is pleased discussions are occurring within other governmental units regarding reducing their property tax levies, opining this is a direct result of the City’s discussions and actions and pressure from the residents. He noted if the other taxing bodies would reduce property taxes by 5-10% this would really have great impact.

Councilman Turner stated he hears a lot from residents concerning the conditions of the streets. He noted this is the worse part of the country in terms of the weather damaging the roads. He stated he would like to see any additional revenue spent on the roads with a sunset provision. He also opined a reduction in the City’s property tax rate would be a great help in recruiting business and industry, which would bring jobs and growth. He stated he would like to hear from the public concerning the various options.

Discussion followed of the impact an increase in sales tax would have on a household with Councilwoman Larson stating she is pleased it would not be imposed on food. In response to a question from M. Larson concerning the business owners’ feelings regarding imposition of an additional sales tax, G. Anderson stated they have opined this is not as great a factor as property taxes.

Mayor Sager stated the voice of the people says to reduce property taxes. He noted the City has done its best in keeping its tax levy the same so it is not responsible for raising property taxes, but still they go up. He stated he now wishes to be the leader in reducing the residents’ tax bills. He opined if the City focuses on reducing its portion of the tax bill by 10%, other taxing bodies will follow suit. He urged Council to take action to set a new standard in property tax relief. Mayor Sager stated the sales tax would be spread out among non-resident purchasers. He advocated for some other small reductions in various fees.

M. Saladin reminded those present that this will require a public hearing and public input per the recently passed Resolution. He stated that this decision could provide property tax relief and improvements to the City’s streets. M. Turner advocated for a vigorous public discussion noting his agreement with Mayor Sager.

Gordon Tebo opined people would support 10% property tax relief with a 1% sales tax that would be spread out over residents and non-residents and result in improved roads.

Mayor Sager asked for a consensus from the City Council as to the direction Staff should take when placing figures in the proposed FY17/18 budget concerning the various items discussed. He reminded those present that further budget meetings and a Budget Hearing will be held before final approval of the budget and that this is one step in the formulation of the budget for the next fiscal year.

After a brief discussion, it was the consensus of the City Council that the renewal fee for the Wireless Alarm Fee be eliminated with the alarm fee itself remaining the same.

After further discussion of video gaming fees, it with the consensus of the City Council to place the following revenue in the FY17/18 Budget for further discussion and consideration: $1,000 Business Application Fee, $500 Fee per Machine, and $1,000 Operator Application Fee.

In regards to property taxes, it was the consensus of the City Council to formulate the budget with providing 10% property tax relief to the residents pending further discussion.

To offset the loss in property taxes, it was the consensus of the City Council to formulate the budget with a 1% Sales Tax increase pending further input from the public. Funding from the Sales Tax would be used to offset the property tax reduction and any additional funds to be utilized for capital outlay needs, specifically resurfacing and improvements to the City’s roads. Furthermore, it was the consensus of the City Council to take no action regarding the Telecommunication Tax and continue at the current rate.

Mayor Sager asked if there are any other projects the Council would like to discuss for possible inclusion in the FY17/18 Budget.

Councilman Starzynski discussed a Sing-a-Long event, which he is proposing for inclusion as part of the 2017 Lighting of the Square. He explained how this would work and the benefits it would have for the City, stating he would like to hold it at the Opera House on the day of the Lighting. Discussion ensued of this new event and the impact it would have on the events already held at the Opera House on that day. Following discussion, it was the consensus of the Council to consider this further including the requirements of the event and the possibility of holding it at the Opera House or other possible venues.

In response to a request from Councilman Saladin to consider repaving a portion of the road through Emricson Park, City Manager Stelford noted this project is already in the CIP for the Council’s consideration.

Councilwoman Larson requested that Staff look at the possibility of adding at least ½ FTE dedicated to managing the Old Courthouse building. She also requested placing funds in the Budget to execute a Downtown Plan.

Mayor Sager requested that Staff look at three other positions including a 2nd Deputy Chief of Police, another technical support position, and another code enforcement officer. City Manager Telford noted a second Deputy Chief position could be filled very cost effectively. He noted that Staff is investigating making IT a separate department, discussing why this is needed. Human Resources

Director D. Schober noted another IT position would be incremental because a part-time IT person was budgeted for in the current fiscal year, but was not implemented. Councilman Turner urged Staff to not only look at an IT position, but to look also at the processes used, not only IT processes but all processes, to determine how things can be done more efficiently. Discussion followed on these proposed changes. Mr. Stelford stated Staff is trying to be proactive with the Code Enforcement Officer position, as well.

In response to a question from RB Thompson, City Manager Stelford stated a project for replacement of the lamps in the Park in the Square is contained in the CIP and is listed as an “A” priority. Councilman Thompson also mentioned the possible placement of additional murals and burying the

Benton Street power lines. Discussion of these projects followed.

ADJOURN

Motion by M. Turner, second by M. Larson to adjourn this Special Workshop Meeting of the Woodstock City Council to the next Regular Meeting on Tuesday, January 17, 2017, at 7:00 PM in the Council Chambers at Woodstock City Hall. Ayes: D. Hart, M. Larson, M. Saladin, J. Starzynski, RB Thompson, M. Turner, and Mayor Sager. Nays: none. Abstentions: none. Absentees: none. Motion carried. Meeting adjourned at 5:40 PM.

Respectfully submitted,

Cindy Smiley

Woodstock City Council Workshop