1 00:01:59,760 --> 00:02:01,920 Mhm. 2 00:02:17,000 --> 00:02:25,600 » Good evening. Welcome to the April 2026 New Canaan Budget Committee meeting. 3 00:02:22,920 --> 00:02:29,120 We will go ahead and get started. The first portion of our meeting is devoted 4 00:02:27,240 --> 00:02:32,240 to public comment. Is there any public comment now? 5 00:02:30,920 --> 00:02:35,880 This is the only portion of the meeting where the public may comment. 6 00:02:36,959 --> 00:02:42,520 Seeing none, we'll move on. Alderwoman Malone Marshall. 7 00:02:40,720 --> 00:02:45,080 Present. Alderman O'Brien. Here. Alderman Osinga. Present. Alderman 8 00:02:44,440 --> 00:02:48,040 Marczak. >> Present. 9 00:02:46,040 --> 00:02:54,080 Alderman Navares. Alderman Johnson. Here. Alderman Jones. 10 00:02:51,240 --> 00:02:56,880 » Present. We do have a quorum. Thank you. We do not have presentations or old 11 00:02:55,720 --> 00:03:00,360 business, but a few [clears throat] items under new business. 12 00:02:58,600 --> 00:03:04,680 The first is consideration of the minutes meeting minutes from the 13 00:03:02,000 --> 00:03:08,440 February and March meetings of the Budget Committee. 14 00:03:06,200 --> 00:03:11,480 Those were in the packet there. Is there any 15 00:03:09,600 --> 00:03:14,160 questions or changes regarding the minutes? 16 00:03:15,880 --> 00:03:21,600 If not, is there a motion to approve the February and March meeting minutes? I'll 17 00:03:19,959 --> 00:03:24,600 make a motion to approve the minutes for February and March. 18 00:03:22,440 --> 00:03:29,239 » Is there a second? Second. Second. Any discussion? 19 00:03:26,120 --> 00:03:32,360 All in favor say aye. Aye. Any opposed? Okay. 20 00:03:30,400 --> 00:03:37,239 Next under new business, we have presentation of our fiscal year 2025 21 00:03:35,080 --> 00:03:40,680 audit. Dale Garrett and Amy Eshelman are here. 22 00:03:39,239 --> 00:03:44,760 Comptroller Rogers, I'll turn it over to you and you can direct the conversation 23 00:03:42,519 --> 00:03:51,239 here. Thank you. So, we did pass out the audits. 24 00:03:48,400 --> 00:03:58,320 We did pass out the audit books. And I am going to turn the floor over to 25 00:03:54,520 --> 00:04:01,840 Dale and Amy and let them go through. Okay. 26 00:03:59,520 --> 00:04:07,360 And if you have questions, I will try to field them. 27 00:04:04,960 --> 00:04:09,720 Thank you. Um, check out the booklet in front of you. 28 00:04:08,520 --> 00:04:13,640 I'm going to do an overview of the booklet. Um, 29 00:04:11,320 --> 00:04:17,079 the binder has several sections. The first section 30 00:04:15,280 --> 00:04:21,160 is the city introduction. It includes officers, officials, and an 31 00:04:18,680 --> 00:04:24,360 organizational chart of the city. 32 00:04:22,919 --> 00:04:28,280 Following that section, we have the auditor's report. 33 00:04:26,040 --> 00:04:32,200 Uh, we have issued an unmodified or a clean opinion for the year ended April 34 00:04:29,840 --> 00:04:35,680 30, 2025. The next section is the management 35 00:04:33,560 --> 00:04:38,720 discussion and analysis, the MD&A we refer to. 36 00:04:37,640 --> 00:04:42,520 It's prepared by the city's comptroller's office and I would 37 00:04:40,680 --> 00:04:46,560 encourage you to read that. It goes through a narrative of the financial 38 00:04:44,840 --> 00:04:51,320 history of the year and a little bit of forward-looking, uh, 39 00:04:48,960 --> 00:04:54,440 opinions as well, which I mean, they're good reading material. 40 00:04:52,840 --> 00:04:57,960 Following the MD&A is the basic financial statements, which I'll be 41 00:04:55,800 --> 00:05:01,800 discussing shortly. And after that section is required 42 00:05:00,640 --> 00:05:05,800 supplementary information, which includes budget actual comparisons for 43 00:05:04,080 --> 00:05:09,720 the major funds and also the pension information related 44 00:05:07,840 --> 00:05:14,360 to IMRF, OPEB, and police and fire. 45 00:05:12,720 --> 00:05:19,760 Then we have the combining schedules for the non-major funds and other 46 00:05:16,520 --> 00:05:23,480 supplementary schedules after that. And after the financial section, there's 47 00:05:21,440 --> 00:05:28,200 the statistical section. It's unaudited, but it's it's a it's a a 48 00:05:25,800 --> 00:05:31,360 statistical selection of compiled information from the city's 49 00:05:30,120 --> 00:05:35,440 comptroller's office from various sources, which gives some historical 50 00:05:33,320 --> 00:05:41,000 data on a variety of subjects 51 00:05:37,800 --> 00:05:46,280 of concern to the city. So, I'll direct you to page 16 and 18 to 52 00:05:43,680 --> 00:05:50,600 start with. It's at the very beginning the financial 53 00:05:48,320 --> 00:05:54,840 statements. That section is the net position of the 54 00:05:52,560 --> 00:05:58,120 in statement of activities of the city. 55 00:05:56,120 --> 00:06:00,960 It's reported on the full accrual basis of accounting, which includes capital 56 00:05:59,520 --> 00:06:04,680 assets, includes long-term debt, 57 00:06:03,160 --> 00:06:09,320 and deferred inflows and outflows pertaining to IMRF, 58 00:06:07,560 --> 00:06:12,920 OPEB, which is um 59 00:06:10,320 --> 00:06:18,200 post post employment benefits, and the police and fire pensions. 60 00:06:15,880 --> 00:06:23,880 Pages 17 and 18 contain a statement of activities. 61 00:06:21,440 --> 00:06:27,640 If you look at the bottom line, there's a about five lines up, there's 62 00:06:25,760 --> 00:06:31,560 changes in net position. 63 00:06:29,640 --> 00:06:35,640 Under governmental activities, you had an increase of $12,300,000, 64 00:06:35,720 --> 00:06:40,240 which is about 3.4 million more than the prior year. 65 00:06:38,960 --> 00:06:44,680 An increase. Uh major contributing factors there 66 00:06:41,800 --> 00:06:48,840 would be expenditures were down overall from the previous year by about $3.8 67 00:06:46,480 --> 00:06:55,960 million, while revenues stayed pretty consistent with the prior year. 68 00:06:52,960 --> 00:06:55,960 Page 19 69 00:06:56,120 --> 00:07:01,080 is a balance sheet for governmental funds. 70 00:06:59,640 --> 00:07:05,160 These are prepared on the modified accrual basis, which is focused more on 71 00:07:02,800 --> 00:07:08,760 the current financial resources. It does not include items such as 72 00:07:06,840 --> 00:07:14,080 capital assets, long-term debt, and liabilities. 73 00:07:11,640 --> 00:07:17,640 General fund column, if you look at the general fund column, 74 00:07:15,560 --> 00:07:22,400 second line from the bottom, overall fund balance increased by about 75 00:07:19,600 --> 00:07:26,880 1.2 million, and the fund balance is sitting there at 25 million 25.3 76 00:07:24,520 --> 00:07:30,960 million, approximately. The if there's about three factors 77 00:07:28,520 --> 00:07:35,040 there, the unassigned balance of the of the uh 78 00:07:33,200 --> 00:07:41,120 general fund was $14.5 million. It decreased by about 79 00:07:38,000 --> 00:07:44,560 1.5 million from the prior year. Prepaid expenses are the primary factor 80 00:07:43,080 --> 00:07:48,280 in the non-spendable portion. Those would be expenses paid 81 00:07:46,600 --> 00:07:50,880 in the previous fiscal year for the current fiscal year. 82 00:07:49,720 --> 00:07:54,600 So, of course, those are not available for for uh 83 00:07:52,960 --> 00:07:57,600 current use. Those increased slightly from the prior 84 00:07:56,760 --> 00:08:02,320 year. The amount committed to pension debt 85 00:07:59,000 --> 00:08:06,240 liability also increased. On page 21, 86 00:08:04,920 --> 00:08:12,120 you have the statement of revenues, expenditures, and changes in fund 87 00:08:08,520 --> 00:08:18,000 balance for the governmental funds. About the fifth line from the bottom is 88 00:08:13,520 --> 00:08:18,000 also the net change in fund balance. 89 00:08:18,680 --> 00:08:23,800 The general fund decreased by about 2.8 million from the prior year. 90 00:08:24,720 --> 00:08:31,320 It's still increase of 1.2 million. 91 00:08:29,600 --> 00:08:34,640 Overall expenditures increased increased and was mostly for 92 00:08:33,280 --> 00:08:38,200 retirement. General expenses also increased slightly 93 00:08:36,200 --> 00:08:43,479 and there's more details further back in the report, which will break down 94 00:08:40,640 --> 00:08:47,000 and that's on pages 113 through 114. Again, if you go to the back to those 95 00:08:45,400 --> 00:08:51,040 detail schedules, if you want to drill down a little deeper on 96 00:08:48,800 --> 00:08:53,800 what up made up those uh those expenditures. 97 00:08:52,400 --> 00:08:56,360 Overall revenues increased from the prior year. 98 00:08:55,400 --> 00:09:02,360 Uh areas of increase were income tax, sales 99 00:08:58,800 --> 00:09:06,040 tax, property tax, and ambulance fees. And again, there's more details further 100 00:09:04,200 --> 00:09:11,240 back in the financials and that would be on page 112. 101 00:09:09,080 --> 00:09:14,240 And also, we less money was transferred from the general fund during the fiscal 102 00:09:13,200 --> 00:09:18,560 year than to other funds 103 00:09:15,760 --> 00:09:18,560 during the year. 104 00:09:19,040 --> 00:09:26,760 Okay. ESU is also Let's see. On pages 23 through 24, 105 00:09:27,880 --> 00:09:32,400 ESU is considered a business type activity. 106 00:09:30,960 --> 00:09:36,440 Um unrestricted net position increased by 107 00:09:33,920 --> 00:09:39,840 about 3.2 million dollars. Uh part of the factors there were 108 00:09:38,040 --> 00:09:45,360 liabilities decreased down by paying down principal on bonds and also paying 109 00:09:42,200 --> 00:09:49,120 down the Elmira EPA loan. There was an increase in investment in 110 00:09:46,720 --> 00:09:53,320 the with Karma as well. The investment in Karma went up by about 2.1 million 111 00:09:51,080 --> 00:09:59,560 dollars. And lastly, on page 105, 112 00:09:56,600 --> 00:10:03,640 in the statement of revenues, expenses, and changes in net position of 113 00:10:01,560 --> 00:10:07,080 proprietary funds. Again, that was 114 00:10:05,000 --> 00:10:11,360 And it focuses on the Environmental Services Utility Fund. 115 00:10:09,320 --> 00:10:15,720 Yes, you had an increase of 5.5 million dollars, which is about 1.1 116 00:10:14,280 --> 00:10:19,720 million dollars less than it was in the previous year. 117 00:10:18,240 --> 00:10:24,440 Factors there were operating revenues increased by about a million dollars. 118 00:10:22,760 --> 00:10:27,520 Well, sewer utility and solid waste public works increased their 119 00:10:25,920 --> 00:10:31,160 expenditures by about 1.8 million dollars. 120 00:10:28,880 --> 00:10:35,200 Uh, depreciation of fixed assets also increased. 121 00:10:32,680 --> 00:10:39,200 And the net operating items such uh, income and expenses remained fairly 122 00:10:36,800 --> 00:10:43,720 consistent. Again, this is a pretty helicopter 123 00:10:41,920 --> 00:10:46,760 view of the financials. Um, 124 00:10:44,640 --> 00:10:50,200 I said I encourage you to read the MD&A and also the footnotes if you want to 125 00:10:48,080 --> 00:10:54,920 get a little more detail about not just the numbers, but some of the 126 00:10:52,760 --> 00:10:59,920 what what makes up uh, the important factors in the financial statements for 127 00:10:56,880 --> 00:10:59,920 the past fiscal year. 128 00:11:01,839 --> 00:11:09,120 And we're always open for comments or questions, even 129 00:11:05,200 --> 00:11:09,120 subsequent to this meeting if needed. 130 00:11:09,280 --> 00:11:15,000 Thank you, Paula. Thank you. 131 00:11:12,839 --> 00:11:17,987 It was kind of a rough year, but we got >> Yeah, we got through it. 132 00:11:15,967 --> 00:11:17,987 » [laughter] 133 00:11:18,160 --> 00:11:23,320 » And that was kind of our fault for taking some of your people away from 134 00:11:21,760 --> 00:11:26,000 you. It's okay. 135 00:11:27,520 --> 00:11:34,520 Was there information in here, Dale, about the pensions, like an update on 136 00:11:31,800 --> 00:11:40,760 where those are? Uh let's see here. 137 00:11:37,560 --> 00:11:40,760 Look at the table of contents. 138 00:11:53,240 --> 00:11:56,240 Uh pages 139 00:11:56,360 --> 00:12:00,320 102, I believe. Let me go there. 140 00:12:04,960 --> 00:12:09,120 I got to memorize 107 pages. That's >> Yeah. 141 00:12:10,200 --> 00:12:18,240 This shows a 10-year history of the uh 142 00:12:15,800 --> 00:12:22,680 various pension funds. You have IMRF, which of course you have no control 143 00:12:19,440 --> 00:12:26,800 over. Um but then you have 102 and 103 is the uh 144 00:12:24,280 --> 00:12:31,360 changes in net pension liabilities for police pension fund. 145 00:12:29,560 --> 00:12:35,640 And then the following page has details on the firefighters pension fund. Yeah, 146 00:12:34,080 --> 00:12:40,480 okay. And then if you turn to the page 14 in 147 00:12:38,480 --> 00:12:45,160 the MDA, um the top of that starts with long-term 148 00:12:43,240 --> 00:12:51,800 debt. Um and it gives a nice summary of the 149 00:12:48,680 --> 00:12:57,680 bond funding and how much we were able to decrease uh liability. 150 00:12:55,560 --> 00:13:01,320 For example, oops, excuse me. Mike? I'm on 151 00:12:59,360 --> 00:13:06,680 Mr. Brennan's um For example, the police pension. 152 00:13:03,400 --> 00:13:11,120 In 2024, your net pension liability was almost $53 million. 153 00:13:09,280 --> 00:13:14,760 That would be the second column on page 102. 154 00:13:13,000 --> 00:13:18,200 The net pension liability dropped to 13 million 155 00:13:16,960 --> 00:13:22,080 the following fiscal year. So, that was quite a 156 00:13:19,360 --> 00:13:22,080 decrease 157 00:13:22,440 --> 00:13:26,960 due to due to the bonds. And it's due to fund the uh pension 158 00:13:25,839 --> 00:13:32,720 plans. Uh what is I'm not following that deal. 159 00:13:29,320 --> 00:13:37,160 » So, page page 102 he's on. If you go to that second column that says that's 160 00:13:34,040 --> 00:13:40,320 police pension fund 2024. Yes. And if you go down you can see that the 161 00:13:38,680 --> 00:13:45,640 net pension liability was almost 53 million. It's 52.895 162 00:13:43,240 --> 00:13:48,840 there about over what 3/4 of the way down on the page. Okay. On that line 163 00:13:47,600 --> 00:13:54,000 that says employers net pension liability. And because of the decision 164 00:13:51,680 --> 00:13:58,280 that you all made to go ahead and and go out with that second tranche that 165 00:13:55,800 --> 00:14:03,120 drastically changed then from that 52 million dollar almost 53 million dollar 166 00:14:00,480 --> 00:14:06,720 liability down to that 13. almost 5 million dollar which is a drastic 167 00:14:04,760 --> 00:14:10,880 difference because of the switch out of the debt basically, right? So, Wow. now 168 00:14:08,840 --> 00:14:15,480 the pension debt isn't the same. We have more bond debt, right? But we know that 169 00:14:12,840 --> 00:14:19,880 the trade-off gave gave millions of dollars of savings over 170 00:14:17,960 --> 00:14:25,680 the course of time with going ahead and letting the stock market take over and 171 00:14:22,720 --> 00:14:29,800 get some gains there and also make sure that you know that we are fully funded 172 00:14:28,320 --> 00:14:33,240 so we just have different schedules and such to 173 00:14:30,880 --> 00:14:36,200 amortize everything over time. You know on those on 104 you had the 174 00:14:34,839 --> 00:14:39,560 same effect on the firefighters pension fund. 175 00:14:40,320 --> 00:14:46,360 So, in essence if you had a chart if you looked at these numbers cuz it's 10 176 00:14:43,720 --> 00:14:50,040 years back and if you look at these and you can see that you know back I'm going 177 00:14:47,800 --> 00:14:54,720 to go back to 16 here. So, we're at 50 50.5 million dollars, okay? So, it went 178 00:14:52,760 --> 00:14:59,000 down a a little bit in 17 which is really low but then of course it it just 179 00:14:56,560 --> 00:15:04,640 kept going up and up and up. So, it goes from 56 million, 66 million, 80 million, 180 00:15:01,760 --> 00:15:09,040 92 million was our height. Then we did some of the bonding brought it down to 181 00:15:05,800 --> 00:15:13,360 65, had some wins in the marketplace and such went down to 48, went back up a 182 00:15:11,400 --> 00:15:17,080 little bit to 52 and then that second tranche came through and dropped that 183 00:15:14,640 --> 00:15:20,600 liability down to 13 million. So, you can you can 184 00:15:19,160 --> 00:15:24,280 somebody who didn't even know what we did could look at this and not even know 185 00:15:23,320 --> 00:15:28,840 they would say, "Well, something happened in these two years that changed 186 00:15:26,600 --> 00:15:32,480 the debt." It's It's that obvious. Yeah, I mean, it's just It's just a few 187 00:15:30,160 --> 00:15:35,560 million among friends, right? Uh but but it's very obvious. I mean, if we graph 188 00:15:34,160 --> 00:15:38,560 this, it would be super obvious as to what we did and that it's working 189 00:15:37,040 --> 00:15:41,920 because you can see that that liability is drastically different. 190 00:15:41,960 --> 00:15:48,440 So, you could see where we just couldn't keep up. Right. We were We were drowning 191 00:15:46,720 --> 00:15:54,320 would be the right word. So, as of the end of last fiscal year, 192 00:15:50,920 --> 00:15:56,120 we were 80 for the police 86.09% funded. 193 00:15:55,640 --> 00:15:59,720 Correct. >> Yeah. Yeah. And I think sometimes as for 194 00:15:58,080 --> 00:16:03,280 your constituents and when, you know, these decisions and questions come up in 195 00:16:01,320 --> 00:16:06,600 conversations, I think sometimes those percentages are just the easiest thing 196 00:16:04,960 --> 00:16:10,600 to understand, right? Like everyone understands what 86% means and things of 197 00:16:09,120 --> 00:16:14,600 that sort. You know, millions get kind of lost, I think, in in translation when 198 00:16:13,240 --> 00:16:18,800 you're talking about, you know, different size of forces, you know, it's 199 00:16:17,440 --> 00:16:23,400 a lot of money. But when you say, "Well, now we are as of the end of April of 200 00:16:20,600 --> 00:16:27,600 '25, we were 86.09% funded in the police pension fund and 201 00:16:26,120 --> 00:16:33,120 whatever it is in fire then." I didn't flip the page, but fire was 86.16. So, 202 00:16:31,200 --> 00:16:37,160 those are very strong numbers and very strong proof of the decisions that were 203 00:16:34,600 --> 00:16:37,160 made. 204 00:16:39,080 --> 00:16:46,200 Then on the next page is 106 and 107. That's got the returns 205 00:16:44,000 --> 00:16:51,480 from the firefighters pension and police pension funds. Those are not any longer 206 00:16:48,839 --> 00:16:56,760 invested locally. Is that correct? That is correct. Yes, both are now with 207 00:16:53,720 --> 00:17:00,839 the downstate pension funds fully. Um fire went first a couple years ago, 208 00:16:59,000 --> 00:17:06,280 and then police followed. But all money's are downstate. They each 209 00:17:02,960 --> 00:17:09,120 have some some minor dollars locally um just to make sure that they can make 210 00:17:07,600 --> 00:17:12,199 their payrolls and things with pensions and make their bills, 211 00:17:10,560 --> 00:17:16,120 um which is basically what everybody else is doing too so that they can keep 212 00:17:13,800 --> 00:17:18,841 as much in the marketplace as possible and take advantage of these gains when 213 00:17:17,560 --> 00:17:24,400 they're there. >> [clears throat] 214 00:17:20,160 --> 00:17:24,400 » Page 28, what am I what am I seeing? 215 00:17:24,680 --> 00:17:31,720 The assets and everything with 151 million for both firefighters and 216 00:17:32,800 --> 00:17:39,480 police officers pension investment fund. 166 for the 217 00:17:39,560 --> 00:17:43,560 Right, so that's that's exactly what we were just talking about. That that 218 00:17:41,920 --> 00:17:46,400 investment held in Illinois. Yeah, that's the downstate pension funds. 219 00:17:44,960 --> 00:17:50,480 Exactly. One's for police and one's for fire. Mhm. That's 151 million is that 220 00:17:48,880 --> 00:17:53,200 for both? Together. Mhm. And then the cash and short-term investments is some 221 00:17:51,920 --> 00:17:57,960 of the cash that they have in their local accounts 222 00:17:55,000 --> 00:18:00,360 as of April 30th of 2025. Okay. All right. Thank you. 223 00:18:00,840 --> 00:18:05,360 And I'm certainly not trying to take over the comptroller here, but since I 224 00:18:03,360 --> 00:18:08,680 do sit on the police pension board, I have a little bit more insight into this 225 00:18:07,120 --> 00:18:11,440 um with that, you know, current appointment. 226 00:18:11,920 --> 00:18:17,920 The The difference in the returns there is pretty interesting between the two 227 00:18:15,400 --> 00:18:22,960 funds. The last 2 years, police was close to 10. 228 00:18:19,920 --> 00:18:25,800 Fire was closer to 2% return. Is that 229 00:18:24,440 --> 00:18:30,040 Obviously, they they make different investments or is 230 00:18:27,320 --> 00:18:33,920 that due to the size that they have or That's a great question. They definitely 231 00:18:31,960 --> 00:18:37,160 are completely separate. So, the managers that do police are not the ones 232 00:18:35,840 --> 00:18:41,080 who do fire. We have completely different contacts and everything. I get 233 00:18:38,920 --> 00:18:46,440 completely separate emails on those on those matters, for sure. 234 00:18:44,320 --> 00:18:51,160 I I think I think some of it has to do too with 235 00:18:48,080 --> 00:18:54,760 um dollars too a little bit, you know, and and the investments that they make, 236 00:18:53,000 --> 00:19:00,120 but I don't have a lot of those details. Truly, when the money went downstate as 237 00:18:57,440 --> 00:19:05,760 much to many people's chagrin, the control is gone. We we have no no 238 00:19:03,200 --> 00:19:10,480 control. We get the reports, you know, um overall though, it is proving at this 239 00:19:07,720 --> 00:19:13,800 point in time to be to be beneficial. And we're going to just keep hoping that 240 00:19:11,840 --> 00:19:17,680 that's exactly what happens. Obviously, we have a lot more dollars working for 241 00:19:15,160 --> 00:19:21,400 us now in the market than we did before and you know, because of the two bond 242 00:19:19,360 --> 00:19:24,960 issues. You know, so if market goes up, you know, 8% in a year, we've got 243 00:19:23,320 --> 00:19:29,440 millions upon millions of more dollars that went up 8% that year. So, 244 00:19:27,440 --> 00:19:32,160 but both both funds are doing well and doing what they're supposed to do. 245 00:19:31,520 --> 00:19:36,040 Um, we 246 00:19:33,640 --> 00:19:39,320 It took me years to believe in this, but the math is working for the funds that 247 00:19:37,520 --> 00:19:43,200 are doing it. It is a switch out of liabilities, of course, like we just 248 00:19:40,720 --> 00:19:45,800 talked about, but there is a lot of cost advantage to switching out that 249 00:19:44,480 --> 00:19:49,760 liability. And we're and we can see it now in 250 00:19:47,240 --> 00:19:49,760 paper. 251 00:19:51,120 --> 00:19:54,760 Okay. Does anyone else have questions? 252 00:19:57,600 --> 00:20:03,360 Thank you, Comptroller Rogers, for leading the charge on this process and 253 00:20:01,640 --> 00:20:07,920 Mayor and City Manager as well. >> Can I say something, Chairman? I just 254 00:20:05,560 --> 00:20:10,440 wanted to thank Paula and her staff for everything that they did with the audit. 255 00:20:09,800 --> 00:20:13,840 Um, it's it's not easy to do your first 256 00:20:12,040 --> 00:20:17,320 audit. I remember my first audit here and it's not easy. 257 00:20:15,800 --> 00:20:21,040 It's a lot. I don't care how much you studied or did before and how good you 258 00:20:19,560 --> 00:20:25,120 are, which Paula is all those things, but it's it's a lot and um, just very 259 00:20:23,880 --> 00:20:29,120 appreciative of all the efforts that went not only from our audit firm, but 260 00:20:26,680 --> 00:20:32,400 from our internal staff and that we have this product and that we're ready to go 261 00:20:30,920 --> 00:20:37,240 and we've got some really good systems in place and looking forward to the 262 00:20:34,280 --> 00:20:42,280 future. Uh, challenges will come. I think this is the beginning of more 263 00:20:38,960 --> 00:20:44,880 challenges to cash shrinkage, but we will get there and we'll figure it out 264 00:20:43,520 --> 00:20:48,400 and we'll continue to run the city as we need to. 265 00:20:46,560 --> 00:20:52,880 I echo those comments as well. Thank you, Comptroller Rogers and your team 266 00:20:50,480 --> 00:20:55,640 and the Mayor, City Manager, our auditors. Thank you for your help, the 267 00:20:54,320 --> 00:21:00,280 committee members. Uh, this is one of the the foundations 268 00:20:58,040 --> 00:21:03,960 of our city every year having this and it's good news. Um, so thanks everyone 269 00:21:02,560 --> 00:21:09,520 for making that possible. Alderman Osinga. Mike, I do have a question. 270 00:21:06,280 --> 00:21:13,440 Um, on page 106 107 it's showing police pension fund last 10 271 00:21:12,280 --> 00:21:17,160 years. Uh, 272 00:21:14,400 --> 00:21:25,680 net investment expense and on police side for 2025 is 9.68% 273 00:21:22,240 --> 00:21:28,600 and on fire side is 1.48%. What would be the 274 00:21:29,680 --> 00:21:36,080 That's exactly what kind of the question was before. I have not studied the 275 00:21:34,080 --> 00:21:39,160 statements that perfectly. To be honest, I don't know if the auditors have 276 00:21:37,040 --> 00:21:41,880 anything to the partners I should say because I've 277 00:21:40,800 --> 00:21:46,440 never [laughter] had two partners or I should say the partners. Well, we'd have 278 00:21:43,920 --> 00:21:49,560 to drill down to the detail but uh, a lot of these numbers I think 279 00:21:48,080 --> 00:21:51,800 there's a lot of work in the moment. Mhm. 280 00:21:50,720 --> 00:21:55,960 They write a lot of these figures. They do a lot of the accounting for this. 281 00:21:53,200 --> 00:21:59,600 Right. But the the numbers not only then are done by, you know, these these um, 282 00:21:58,120 --> 00:22:04,080 the investments at the state and we get those statements, you know, on a monthly 283 00:22:01,840 --> 00:22:08,120 basis. But then they have their at the state level they have their own 284 00:22:05,280 --> 00:22:12,240 actuaries that do work on that and we have our own actuaries that we pay 285 00:22:10,640 --> 00:22:16,520 because we want to make sure that we are doing what we need to be doing. So, I'm 286 00:22:14,440 --> 00:22:19,240 not nervous that something's wrong. I just don't know the why and that's 287 00:22:17,720 --> 00:22:22,720 something I'm going to dig into for you. But it's it is very interesting. I 288 00:22:20,880 --> 00:22:26,240 thought it was closer than that. Um, I really did until we just looked at it 289 00:22:24,480 --> 00:22:27,440 right now. So, definitely do some digging on that. 290 00:22:27,350 --> 00:22:30,880 » [clears throat] >> Okay, thank you. You're welcome. 291 00:22:31,200 --> 00:22:35,920 You can trust the state with the money. They do good. 292 00:22:33,900 --> 00:22:35,920 » [laughter] 293 00:22:37,360 --> 00:22:42,840 » All right. Well, thank you Dale and Amy. Thank you very much. Everyone here from 294 00:22:40,520 --> 00:22:48,480 as well. Thank you. All right. We'll move on. Our next 295 00:22:44,960 --> 00:22:52,440 agenda item is the review of the regular March financial statements. Comptroller 296 00:22:50,600 --> 00:22:56,480 Rogers, would you take us through those, please? Thank you. 297 00:22:54,640 --> 00:23:01,040 So, you have the statements in front of you. I apologize. My goal is still to 298 00:22:59,000 --> 00:23:06,480 get these statements in your hands before our meetings. 299 00:23:03,360 --> 00:23:10,320 Um and I think this year we're on track to be able to do that with the 300 00:23:08,640 --> 00:23:15,560 additional help that I've got in my department now. 301 00:23:12,320 --> 00:23:21,560 Um so, I was looking at the revenues, which start on page one of the revenue 302 00:23:19,280 --> 00:23:27,960 expense report, um right after the minutes. 303 00:23:24,520 --> 00:23:32,800 And a few things stood out to me in the area of the taxes, the corporate 304 00:23:30,720 --> 00:23:37,960 replacement taxes, and we had talked about that before, is significantly less 305 00:23:35,800 --> 00:23:42,840 than what we expected it to be when we budgeted. We budgeted quite a bit lower 306 00:23:40,720 --> 00:23:46,600 than we had the year before, but it ended up being even less than what we 307 00:23:44,960 --> 00:23:52,720 were expecting. Now, part of that is because the state 308 00:23:48,800 --> 00:23:56,960 has changed how the local use tax and part of those corporate replacement 309 00:23:54,680 --> 00:24:03,280 taxes are going through. So, a little bit of what we lost, we did 310 00:24:00,600 --> 00:24:06,880 pick up in the state income tax. If you notice, that's 105% 311 00:24:05,640 --> 00:24:12,600 right now. Um but it's not enough of an offset. 312 00:24:10,040 --> 00:24:16,040 There's still about $400,000 that we end up being short to this 313 00:24:14,720 --> 00:24:19,240 point. Now, 314 00:24:17,320 --> 00:24:25,040 the only thing with that is we really won't know until July when we've got our 315 00:24:22,000 --> 00:24:29,960 final accruals in there what this year ends up shaking out because there is the 316 00:24:27,520 --> 00:24:34,520 timing difference. Right now, you're looking at revenues as they were 317 00:24:31,760 --> 00:24:40,600 collected. When we get ready to close the year, then we'll have um May, June, 318 00:24:37,760 --> 00:24:45,400 and July because the state is that far in their payments, far behind in their 319 00:24:42,920 --> 00:24:52,120 payments. So, there may be some differences in there, but I don't expect 320 00:24:48,520 --> 00:24:57,720 corporate or local use to make a rebound this year, I guess is why I'm saying all 321 00:24:54,360 --> 00:25:04,840 of that. We will pick up some in the income tax area, but I expect both of 322 00:25:00,880 --> 00:25:04,840 those to be lower for next year. 323 00:25:05,160 --> 00:25:12,920 Um, licenses, that whole section down there is still 324 00:25:10,520 --> 00:25:18,520 way under what we budgeted because the liquor licenses, which is a large 325 00:25:15,280 --> 00:25:24,720 portion of it, is going to be collected this month. So, we won't really have 326 00:25:21,200 --> 00:25:29,200 good figures on this until end of year. Uh, it's small dollars. I'm not too 327 00:25:27,160 --> 00:25:35,000 worried about it even if it is under, it's not going to hamstring us. 328 00:25:31,920 --> 00:25:40,800 Uh, franchise fees, I changed the name on this account to say franchise fees. 329 00:25:37,680 --> 00:25:46,080 We had it saying cable TV there, but I'm looking at it, the lion's share of that 330 00:25:43,120 --> 00:25:53,480 was actually coming from Aqua. Um, it was franchise fees for Aqua is 331 00:25:49,720 --> 00:25:58,480 the largest part of that component, and they were up this year. They went up by 332 00:25:56,280 --> 00:26:06,000 about 11%. So, Aqua drove that a little higher, but 333 00:26:02,600 --> 00:26:10,520 as we had discussed before, DirecTV and Comcast both are down, and I don't 334 00:26:08,800 --> 00:26:16,200 expect that they're going to come back up either. It's just the way of the 335 00:26:12,920 --> 00:26:24,000 world now. There aren't as many people um, utilizing DirecTV and Comcast as 336 00:26:19,680 --> 00:26:28,760 there were before. So, DirecTV was down 17% 337 00:26:25,560 --> 00:26:32,320 over 17% for the year, and Comcast was down over 11%. 338 00:26:33,760 --> 00:26:45,200 If you flip up to the next page, um, all three of these sections, grants, 339 00:26:41,320 --> 00:26:51,240 service charges, and fines are all over budget. Um, we had discussed we picked 340 00:26:48,320 --> 00:26:56,400 up that grant. Um, we had put in a $50,000 place marker thinking we might 341 00:26:54,240 --> 00:27:01,760 pick up something in grants. But then we got the $300,000 342 00:26:58,920 --> 00:27:05,920 related to Riverwalk on the grant funding that we didn't know at the time 343 00:27:04,120 --> 00:27:09,600 we closed up budget was going to be coming our way. 344 00:27:07,360 --> 00:27:14,800 So that's going to end the year well over what the budget was. 345 00:27:11,760 --> 00:27:19,160 Service charges are really running right along where I'd expect them to be. 346 00:27:17,520 --> 00:27:25,160 And fines fines and liens on that next page, the 347 00:27:22,000 --> 00:27:30,000 top of the next page, have rebounded. Um, we finally got the code department 348 00:27:27,520 --> 00:27:35,200 back up to staff so that they can be out there doing the inspections. 349 00:27:32,520 --> 00:27:39,400 So those fees have gone up higher. Um, and we're doing a good job, I think, 350 00:27:37,680 --> 00:27:44,160 of staying on track and trying to collect them. 351 00:27:42,200 --> 00:27:50,200 Interest and other, uh, on page three. 352 00:27:47,120 --> 00:27:56,560 So the interest section there, I overestimated on our budget. We just end 353 00:27:53,280 --> 00:28:03,040 up falling a little short there. Um, and then we're got a and hotel tax. 354 00:28:00,600 --> 00:28:07,000 I was afraid when I saw the hotel tax that maybe we were behind on payments. 355 00:28:05,440 --> 00:28:11,840 We are not. Uh, the biggest hotel in Kankakee has 356 00:28:09,640 --> 00:28:15,440 dropped in half. Um, 357 00:28:13,120 --> 00:28:20,200 two years ago they were four times higher than what they are now. And I 358 00:28:17,320 --> 00:28:23,880 don't think anybody's shocked by that. Uh, and then the other two hotels we 359 00:28:22,160 --> 00:28:28,320 have are small enough it wouldn't have made a dent, but they've gone down as 360 00:28:25,920 --> 00:28:28,320 well. 361 00:28:29,760 --> 00:28:37,240 As far as expenditures, um, the expenditures really are pretty 362 00:28:34,640 --> 00:28:42,600 much all the departments running at or under budget. There's only a couple of 363 00:28:40,440 --> 00:28:48,840 outliers. Um, we've talked about this before, but one 364 00:28:45,520 --> 00:28:54,400 of the places that we've been hit hard and we put in the budget this year, we 365 00:28:50,960 --> 00:28:59,960 put in a contingency of $200,000 for ECDA for economic development 366 00:28:57,920 --> 00:29:05,480 because we weren't sure they were still in the audit process what was going to 367 00:29:02,040 --> 00:29:10,040 shake out. Well, what we feared worst is what shook out. There are expenditures 368 00:29:08,120 --> 00:29:14,440 that they're no longer going to cover. We're going to have to be on the hook 369 00:29:11,600 --> 00:29:19,680 for paying their rental and their lease um and much of their administrative 370 00:29:16,920 --> 00:29:23,600 costs that before they were covering, the city's going to have to find a way 371 00:29:21,400 --> 00:29:28,680 to absorb those. Um 372 00:29:25,520 --> 00:29:33,040 So, overall, if we look at salaries and this you won't find on the individual 373 00:29:30,480 --> 00:29:38,360 pages. I've been working on a summary that I will start distributing with next 374 00:29:36,120 --> 00:29:43,720 year's financials. I wanted to make sure the bugs were out of it first. It's 375 00:29:40,720 --> 00:29:50,560 similar to what I give ESU. So, salary, wages, and overtime, we 376 00:29:46,880 --> 00:29:55,680 budgeted $16.2 million. Um our year-to-date amount is only at 377 00:29:53,720 --> 00:30:02,400 13.8 which is only 84.7%. 378 00:29:58,560 --> 00:30:07,000 So, we are significantly under budget. Um not that we'll necessarily stay there 379 00:30:05,040 --> 00:30:13,440 with all the cleanup that's still going on with the storm. We still have monies 380 00:30:10,680 --> 00:30:18,800 that's going to be coming out um which we may or may not have reimbursement for 381 00:30:16,240 --> 00:30:24,400 somewhere down the line. Um insurance and pension 382 00:30:22,120 --> 00:30:29,520 those expenditures uh were pretty well along with budget 383 00:30:27,760 --> 00:30:34,960 except that our pension contributions end up being 384 00:30:31,880 --> 00:30:40,120 slightly higher than what we expected. Um and that really is just a learning 385 00:30:37,560 --> 00:30:42,960 curve on my part to figure out how much we're going to be putting into pension 386 00:30:41,881 --> 00:30:47,400 [clears throat] based on what's left over after we pick 387 00:30:45,400 --> 00:30:52,400 up the amount that goes through tax levy. 388 00:30:48,600 --> 00:30:58,600 So, we were sitting at 102% there. Training and travel is well under 389 00:30:54,640 --> 00:31:04,360 budget. It's only at 58%. Um supplies and equipment, they're under 390 00:31:01,200 --> 00:31:13,080 budget at 56%. Um contracts and services are at 87.8%, 391 00:31:10,280 --> 00:31:19,600 which is still a good place to be at this time of year under budget-wise. 392 00:31:16,040 --> 00:31:24,560 Uh the only other one was the all other. Uh it was sitting at 85%. 393 00:31:22,560 --> 00:31:30,400 Repairs and maintenance were down this year. Uh we had quite a few things that 394 00:31:27,400 --> 00:31:34,800 went wrong last year that we had to fix. Uh but this year we stayed right in line 395 00:31:32,680 --> 00:31:40,120 in budget and we're actually coming in quite a bit under. 396 00:31:36,920 --> 00:31:45,440 So, the total expenditures, if we flip up now to that page 397 00:31:42,720 --> 00:31:45,440 12, 398 00:31:45,560 --> 00:31:53,840 we're sitting at 87 and 1/2 and we're 92% of the way through the 399 00:31:51,400 --> 00:31:58,880 budget year. So, again, we're in really good shape um 400 00:31:57,520 --> 00:32:01,640 for being through March. 401 00:32:02,320 --> 00:32:10,240 Yes. In regard to the uh hotel tax, um the trend seems to be, you know, going 402 00:32:07,240 --> 00:32:12,920 to the Airbnbs and you know, that that type of rental, which isn't really 403 00:32:11,600 --> 00:32:18,160 necessarily a bad thing with the exception of the loss of revenue. Um I 404 00:32:15,520 --> 00:32:23,640 know it's been discussed um you know, in far as collecting the taxes on these 405 00:32:20,680 --> 00:32:26,560 when they go through, you know, Airbnb. Um 406 00:32:24,280 --> 00:32:30,120 is there any follow-up on where >> Dawn is working on that. She is 407 00:32:28,080 --> 00:32:35,520 diligently working on that. Part of the problem is getting our arms around where 408 00:32:33,080 --> 00:32:41,400 these Airbnbs are. Um we actually were doing some research 409 00:32:38,480 --> 00:32:46,400 Mhm. like a booking agent would do to try and pinpoint where in the city they 410 00:32:43,760 --> 00:32:51,160 are. Um, we've got to get some compliance on how they register so we 411 00:32:49,080 --> 00:32:55,280 can know how much money is out there. I know there was a conversation where um, 412 00:32:53,480 --> 00:32:58,800 you know, they booked online and they were collecting tax. So if that's the 413 00:32:57,080 --> 00:33:02,480 case, I mean, you know, should we not be looking at at the companies and going, 414 00:33:01,240 --> 00:33:06,680 okay, you guys are collecting it, where's the revenue? The companies are 415 00:33:04,560 --> 00:33:11,600 supposed to collect tax, but it's my understanding the city has to 416 00:33:09,480 --> 00:33:17,080 tell them where those monies are supposed to be coming from. 417 00:33:14,520 --> 00:33:21,560 So it's a little of he said, she said and the reason we don't have it is we 418 00:33:19,280 --> 00:33:27,520 aren't speaking the same language. But that is something Don is working on 419 00:33:23,920 --> 00:33:32,400 to track down where they are um, to send code out to tell them they're not in 420 00:33:29,560 --> 00:33:37,600 compliance if they're not recording the revenues and giving us a percentage. 421 00:33:35,520 --> 00:33:41,600 Um, it's probably going to be a year or two for we get our arms completely 422 00:33:39,920 --> 00:33:45,760 around it. And I don't think it's going to be 423 00:33:42,960 --> 00:33:48,120 enough to make up for the hotel tax. Mhm. 424 00:33:48,840 --> 00:33:53,040 I was just going to say too that I have a feel Are you going to speak about the 425 00:33:51,720 --> 00:33:55,920 changeover? Is that what you're going to speak about? Okay. I'll let you talk 426 00:33:54,280 --> 00:33:59,840 about that. The The other thing is is that this is a very common theme across 427 00:33:57,600 --> 00:34:03,440 many municipalities right now. Uh, the whole Airbnb and collection cost. 428 00:34:01,760 --> 00:34:07,440 There's a thread probably on my city manager 429 00:34:04,640 --> 00:34:10,800 um, like thread from the from the group that I'm in with city managers. There's 430 00:34:09,040 --> 00:34:14,520 probably one about this every six to eight weeks that somebody 431 00:34:12,879 --> 00:34:18,000 says again, so how are you doing this? And everyone's kind of struggling with 432 00:34:16,360 --> 00:34:22,800 it. So I think people will start to get their arms around it more, which we're 433 00:34:19,760 --> 00:34:26,080 doing our best now as Paula said and um, hopefully that'll come together and then 434 00:34:24,520 --> 00:34:30,600 mayor's going to feed in with you as far as 435 00:34:27,760 --> 00:34:34,000 Yeah, as as controller mentioned, the um, the hotel south of town down on 436 00:34:32,360 --> 00:34:39,120 Riverstone Parkway is down significantly. At one point, um, and not 437 00:34:36,639 --> 00:34:43,200 that far long ago, probably less than 12 months ago or even 18 months ago, 438 00:34:41,600 --> 00:34:46,600 that was the number three hotel in all of Kankakee County for revenue 439 00:34:45,399 --> 00:34:52,120 collection. Um, when they lost the Hilton Garden 440 00:34:48,960 --> 00:34:56,280 Flagship and became Wyndham, they have not, um, you can see the new signages 441 00:34:54,600 --> 00:35:00,360 and all, but just a banner at this point or some things that I think that has 442 00:34:57,760 --> 00:35:03,560 dramatically affected their business. Um, 443 00:35:01,600 --> 00:35:08,320 and so, and we have been having conversations with them and emails back 444 00:35:05,600 --> 00:35:12,800 and forth, myself, uh, Director Brewer Watson, City Manager Korboul, about, um, 445 00:35:11,720 --> 00:35:16,640 they're supposed to be doing a significant renovation on that hotel 446 00:35:14,840 --> 00:35:20,800 starting this summer. They right now own a hotel in New Orleans that is just 447 00:35:18,360 --> 00:35:24,400 finishing up a $7 million renovation there and their next project is this one 448 00:35:22,920 --> 00:35:28,440 where they're going to come in and they expect to spend easily 449 00:35:26,960 --> 00:35:32,720 a million plus, but closer probably to $2 million in renovations to the hotel. 450 00:35:31,040 --> 00:35:37,920 I'm hoping that when they do that, that will help bring everything back cuz 451 00:35:34,240 --> 00:35:40,800 Wyndham isn't a horrible brand name. Um, they're all in municipalities and stuff, 452 00:35:39,600 --> 00:35:45,760 but where they're at right now, they're kind of in a limbo of having the 453 00:35:43,000 --> 00:35:48,960 upgrades that need to be done. So, um, but we are in conversations with 454 00:35:47,200 --> 00:35:52,720 them about what that means and we're supposed to have a meeting here shortly 455 00:35:50,280 --> 00:35:57,000 with them. And they did have a significant bump in 456 00:35:55,080 --> 00:36:02,320 the revenues that we picked up during the time frame of Regatta. Yes. 457 00:35:59,600 --> 00:36:06,600 Um, but then this month was the lowest I've ever seen it. Mhm. 458 00:36:05,200 --> 00:36:10,840 And, um, I heard uh, um, Mayor was talking about how we 459 00:36:09,280 --> 00:36:14,640 were going to Yeah, yes. I heard how we were going to 460 00:36:12,560 --> 00:36:16,920 I was just listening to how we were going to pay for, 461 00:36:16,360 --> 00:36:19,720 um, you know, the overtime and all that. I 462 00:36:18,160 --> 00:36:22,760 didn't really hear it. I mean, you say we're going to handle it, you know, the 463 00:36:21,120 --> 00:36:25,560 overtime and how where is it going to come from, you know, I know The overtime 464 00:36:24,560 --> 00:36:29,080 for? For the, um, storm and everything 465 00:36:27,120 --> 00:36:31,440 because apparently not I don't believe anything going to be 466 00:36:29,920 --> 00:36:34,640 coming anything going to be coming from the state or federal 467 00:36:33,080 --> 00:36:37,640 » is the storm. We're going to talk about that probably at city council. Uh we'll 468 00:36:36,480 --> 00:36:42,120 have we can talk a little bit about tonight. It's It's as good as any time 469 00:36:39,160 --> 00:36:46,520 to talk about it. Um the city is going to face some significant expenses from 470 00:36:45,040 --> 00:36:50,720 this storm. And what I mean we're we're no different 471 00:36:48,640 --> 00:36:55,000 than anybody else with their homes. So we have um just give you a quick 472 00:36:53,000 --> 00:36:59,000 update and I'm I have city manager correct me if I'm wrong cuz she's been 473 00:36:56,720 --> 00:37:03,720 working on this diligently along with uh David Guzman. Um 474 00:37:01,640 --> 00:37:07,960 we have had all of our vehicles inspected. I believe it was roughly 78 475 00:37:05,560 --> 00:37:13,600 vehicles that have been affected. And then we hired our own assessment of 476 00:37:11,480 --> 00:37:16,400 all the roofs along with the insurance which just out in the last 2 weeks 477 00:37:14,880 --> 00:37:21,080 inspecting all of our properties. Not just roofs, things like HVAC equipment 478 00:37:18,320 --> 00:37:23,480 on top, uh aluminum wrappings, things of that. 479 00:37:21,800 --> 00:37:27,240 Basically every roof in the city of Kankakee is going to need to be replaced 480 00:37:25,840 --> 00:37:30,280 including the new ones we just recently did. Like we just did one at the hydro 481 00:37:28,680 --> 00:37:32,600 plant. We just did one at the depot 2 or 3 years ago. They're all going to be 482 00:37:31,560 --> 00:37:35,320 needed. The key is going to be just like 483 00:37:33,920 --> 00:37:37,920 everybody else is facing, they're going to depreciate probably some of those 484 00:37:36,760 --> 00:37:41,800 roofs. Right. >> Meaning hydro plant and depot are 485 00:37:40,280 --> 00:37:45,760 probably going to going to get fixed because they're fairly new. 486 00:37:43,520 --> 00:37:49,480 But we might have a fire station that hasn't had a new roof replaced in 487 00:37:48,200 --> 00:37:54,360 25 plus years. They're going to depreciate that value out, things like 488 00:37:51,400 --> 00:37:57,880 that. Um we are probably going to face just like everybody else a shortfall of 489 00:37:56,200 --> 00:38:00,920 whatever the insurance claim is and we're going to have to figure that out 490 00:37:59,040 --> 00:38:05,520 moving forward. Okay, that's what I was asking. So we're we're in hardship just 491 00:38:03,480 --> 00:38:08,920 as much as the residents are. We're just in a bigger number hardship. I don't 492 00:38:07,600 --> 00:38:12,120 know what our final claim number will be. 493 00:38:10,040 --> 00:38:16,360 Um I'm sure it'll be well north of seven figures. 494 00:38:14,600 --> 00:38:19,800 But I don't expect that we will when we go to replace everything and all that, I 495 00:38:18,000 --> 00:38:22,480 think there's going to be a gap. And we're going to have to make up that 496 00:38:21,080 --> 00:38:26,480 gap and that's going to be a part of the budget going forward next year that we 497 00:38:24,640 --> 00:38:31,880 had some gaps already going into this year. Um and talking with comptroller 498 00:38:29,280 --> 00:38:36,880 this morning and city manager and past um we're expecting significant um 499 00:38:35,360 --> 00:38:41,200 gap coming into the first draft of the budget and part of that uh comptroller 500 00:38:39,080 --> 00:38:47,360 you want to talk about is just the cost of expenses and everything are 501 00:38:43,040 --> 00:38:52,240 up roughly about 26% you said? Yeah. So, in order to make sure I'm moving the 502 00:38:49,160 --> 00:38:56,760 cash, not moving too much of it at one time when the bills come through, I've 503 00:38:53,960 --> 00:39:01,920 been tracking the bills to make sure I'm moving money into general fund out of 504 00:38:58,880 --> 00:39:08,520 Illinois funds where it earns income. So, I've been tracking very closely and 505 00:39:05,680 --> 00:39:13,720 we've been running steadily ticking up and ticking up on the dollar value of 506 00:39:11,200 --> 00:39:21,920 those bills that are coming through. We were like 26% higher this last bill 507 00:39:17,800 --> 00:39:27,680 time than we have been on the averages um since I've been tracking it since 508 00:39:24,200 --> 00:39:32,120 September 24. So, so things like it could be as much as 509 00:39:29,520 --> 00:39:35,000 repairs on vehicles are just more costly this now cuz the rates have gone up, 510 00:39:33,800 --> 00:39:40,200 they're no longer charged I'm picking a number $85 an hour it's now $95 an hour. 511 00:39:38,440 --> 00:39:44,240 The cost of a paperclip, the paper, to whatever it is, just 512 00:39:42,000 --> 00:39:49,800 everything is much more costly now. Um almost as you're seeing almost a quarter 513 00:39:46,880 --> 00:39:54,680 almost 1/4 of a expense there. So, with figuring that out, we've got 514 00:39:53,200 --> 00:39:59,920 uh collective bargaining agreements that we have obligations to. Mhm. Insurance 515 00:39:57,640 --> 00:40:03,440 and everything else is going up. I'm we're a little nervous about what is 516 00:40:01,560 --> 00:40:07,920 going to be the insurance come this December for 517 00:40:05,480 --> 00:40:11,082 property and casualty because if you think the insurance companies are going 518 00:40:09,240 --> 00:40:12,880 to raise the area. >> [clears throat] 519 00:40:11,520 --> 00:40:16,320 » I'm sure they will with this dramatic storm and we're facing the same thing. 520 00:40:14,520 --> 00:40:19,360 So, back to your question about overtime and everything, 521 00:40:17,600 --> 00:40:25,240 um we're going to we'll to play it out, but we have no choice. We've got um 522 00:40:22,840 --> 00:40:27,680 our our team is working hard. They're doing what they're supposed to be doing, 523 00:40:26,360 --> 00:40:30,000 putting in extra long hours and everything to make sure that the 524 00:40:28,640 --> 00:40:33,920 citizens are taken care of and that's the cost of business running the city 525 00:40:32,000 --> 00:40:37,200 because that's what we have to do, but it is going to affect us. This storm 526 00:40:35,840 --> 00:40:40,920 we're not escaping the damage from this storm either, whether it's physically or 527 00:40:39,440 --> 00:40:44,720 financially. Okay, thank you mayor. Very thorough. 528 00:40:42,760 --> 00:40:47,760 Very thorough. Thank you, city manager. Comptroller, thank you. 529 00:40:52,320 --> 00:40:56,280 Does anybody have any questions? 530 00:41:04,800 --> 00:41:12,480 Okay. Thank you, Comptroller Rogers. And under updates, we have an ARPA 531 00:41:10,840 --> 00:41:16,520 update and the note regarding the budget for next year. 532 00:41:15,160 --> 00:41:20,640 Can we turn Can I go back just real quick? That last page is you got cash 533 00:41:18,520 --> 00:41:23,720 balances. Because I'm going to let Comptroller 534 00:41:22,320 --> 00:41:27,520 talk about that, but I think what she's going to point out to you is it's 535 00:41:25,840 --> 00:41:30,880 pretty strong. And I go back to a lot of times people 536 00:41:29,280 --> 00:41:34,480 will say, "Why are we sitting on this cash? Why shouldn't we get 537 00:41:33,000 --> 00:41:37,360 it's for instances like the unpredictable. 538 00:41:35,800 --> 00:41:40,320 We're going to need this cash on hand because of the storm 539 00:41:38,760 --> 00:41:44,120 to take care of the city and we don't have ARPA. ARPA's ending. 540 00:41:42,200 --> 00:41:48,023 We don't have other things. So, I'll let her go through cash, but this is exactly 541 00:41:46,280 --> 00:41:51,160 why >> [snorts] 542 00:41:48,640 --> 00:41:55,840 » we try we're we're proud of our leaders in the expense team. As you saw, revenue 543 00:41:53,400 --> 00:41:59,720 is really strong. Expenses is down again consistently over the years because we 544 00:41:57,960 --> 00:42:02,800 prepare for things of the unknown, whether it's a sinkhole in the street or 545 00:42:01,360 --> 00:42:06,520 unfortunately a storm that happens once every 50 years 546 00:42:04,920 --> 00:42:10,720 in our community. We're going to need these dollars 547 00:42:08,000 --> 00:42:16,520 whatever that gap is. Yes, we end up we're we were sitting at 548 00:42:13,880 --> 00:42:24,120 45 million at the end of February. We're sitting at 44 at the end of March. 549 00:42:19,760 --> 00:42:29,800 Um we are in a good strong position. Uh but you'll notice it was general funds 550 00:42:26,520 --> 00:42:34,080 that were at that time of year now until the tax [clears throat] money start 551 00:42:31,600 --> 00:42:39,360 rolling in. We have to play it close to the vest to make sure that we're putting 552 00:42:36,600 --> 00:42:46,760 the money in to fund. The one thing I was very pleased with when I tracked the 553 00:42:42,280 --> 00:42:52,320 payroll since September of 2024, it's less than 8% that it's gone up. And we 554 00:42:49,520 --> 00:42:56,600 have increased positions. We've brought fire up to full staff. We've brought 555 00:42:54,840 --> 00:43:00,840 police up to full staff. >> As a way We've added staffing in other 556 00:42:58,600 --> 00:43:06,320 areas around the city including the comptroller's office. 557 00:43:02,760 --> 00:43:11,840 Um and we've had modest increases. So I was really happy with the fact that 558 00:43:08,160 --> 00:43:16,680 payroll hasn't had that skyrocket to it. Um but we really we really don't have a 559 00:43:14,440 --> 00:43:21,800 lot of control over the supply costs and how they're going up. 560 00:43:18,880 --> 00:43:27,120 Um but yes, we are still in a very good position. 25 million sitting there in 561 00:43:24,480 --> 00:43:32,560 Illinois funds where we're making the highest percentage of interest is a good 562 00:43:30,200 --> 00:43:37,280 thing to have. As the mayor says, we've got that money set aside for a rainy 563 00:43:34,880 --> 00:43:37,280 day. 564 00:43:38,520 --> 00:43:42,240 Um and then ARPA 565 00:43:42,320 --> 00:43:49,120 The only thing really to discuss >> [clears throat] 566 00:43:45,720 --> 00:43:53,640 » perspective there, we're down to 1.1 million 567 00:43:50,320 --> 00:43:59,520 um as far as what's left outstanding. The allocations are we're just running 568 00:43:56,640 --> 00:44:02,520 down the clock trying to get it all used before December. 569 00:44:04,000 --> 00:44:09,480 We of course have another are ARPA report that's due here in the next few 570 00:44:07,320 --> 00:44:13,320 weeks for the first quarter. Um obviously we're you know we're we're 571 00:44:11,640 --> 00:44:16,880 dwindling it all down so there's a lot less to report upon. No new projects to 572 00:44:15,080 --> 00:44:20,840 create so as I reported in the past it goes fairly quickly now. About we in our 573 00:44:19,440 --> 00:44:24,960 meeting this morning the three of us we spoke about the fact that we do need to 574 00:44:23,280 --> 00:44:29,000 start you know being very intentional about making sure that those allocations 575 00:44:26,920 --> 00:44:33,360 that are still out there are utilized the way that was intended by this very 576 00:44:30,480 --> 00:44:33,360 city council. 577 00:44:40,945 --> 00:44:47,320 » [clears throat] >> Do you have questions about ARPA? 578 00:44:45,280 --> 00:44:49,840 If none will anything about the budget or do we cover that already? 579 00:44:49,461 --> 00:44:53,120 » [snorts] >> Um 580 00:44:51,200 --> 00:44:57,120 we talked this morning about budget. We have so many other big pieces that are 581 00:44:55,040 --> 00:45:03,480 still missing. I [clears throat] am starting to meet with the individual 582 00:44:58,920 --> 00:45:10,280 department heads. I met first with fire. He's gotten most of his numbers to me. 583 00:45:06,800 --> 00:45:14,080 Uh our goal is to me individually meet with the departments and come back with 584 00:45:12,080 --> 00:45:19,440 numbers for the mayor so that we can start digging in because we are sort of 585 00:45:17,280 --> 00:45:24,200 fearful that this year is not going to be a year that we're trying to figure 586 00:45:21,800 --> 00:45:29,520 out how to spend the leftovers. It's going to be a year where we're trying to 587 00:45:25,920 --> 00:45:33,240 figure out how to trim down and make the um expenditure smaller. 588 00:45:35,000 --> 00:45:40,680 Any questions about budget? And um Chairman 589 00:45:39,320 --> 00:45:45,800 you want to speak about what will be on the city council agenda for Monday night 590 00:45:42,560 --> 00:45:52,360 with the resolutions Paul? Oh yes, we do have two resolutions that will be passed 591 00:45:48,680 --> 00:45:57,320 Monday night um to continue our spending until we have passed the budget. It's 592 00:45:55,040 --> 00:46:01,560 something that we do every year. It just has to be done before the end of our 593 00:45:59,000 --> 00:46:01,560 month. 594 00:46:02,520 --> 00:46:07,400 Thank you. Any questions about budget or anything else? 595 00:46:07,800 --> 00:46:13,360 Sure, I just want to say uh man I think uh thank you for that information 596 00:46:11,640 --> 00:46:16,480 because I don't all of us are dealing with houses, you know, we all got so 597 00:46:15,080 --> 00:46:20,600 many different things going on. We never really thought about as the city got the 598 00:46:18,600 --> 00:46:25,400 same thing what we call depreciation on the roofs and all of the cars and all. 599 00:46:23,400 --> 00:46:29,920 Is there do we have anything that we have a deductible to me or anything like 600 00:46:28,200 --> 00:46:34,080 that? You know, when you got a car, you have to pay so much on a house. Do we 601 00:46:32,120 --> 00:46:39,120 have the same type of situation with our insurance within the city? You know, if 602 00:46:36,720 --> 00:46:43,840 the cars are bad, they're going to get thrown away. Do we do the same thing 603 00:46:41,200 --> 00:46:48,200 within the city? We do. We do have to Just bigger deductibles. Mhm. Okay, so 604 00:46:46,840 --> 00:46:51,800 we do have a deductible. We have >> have deductibles. You know, the 605 00:46:49,000 --> 00:46:54,200 unfortunate thing is we we can't partake in the 606 00:46:52,840 --> 00:46:57,600 SBA program or just going to give information out. 607 00:46:55,120 --> 00:47:00,160 » Right. Uh it's good for property owners, it's good for rentals, it's good for 608 00:46:59,040 --> 00:47:02,840 businesses, and it's good for nonprofits. 609 00:47:01,720 --> 00:47:07,800 The one thing they left out was government. So, we're on our own. 610 00:47:05,600 --> 00:47:10,200 Um but again, we'll be able to handle it and we'll figure it out. But the answer 611 00:47:08,840 --> 00:47:13,680 to your question is yes, we have some cars that'll be totaled out. Uh we'll 612 00:47:12,520 --> 00:47:17,240 figure out what we're going to do with that. I know there's things I'll give an 613 00:47:14,960 --> 00:47:21,240 example. I believe there's a truck in DPW that is totaled out. Doesn't mean 614 00:47:19,600 --> 00:47:24,520 we're not going to get money for it, but we can still potentially keep that 615 00:47:23,440 --> 00:47:27,760 truck. One >> those ones that's great for maybe you 616 00:47:26,240 --> 00:47:31,480 splash paint all over or whatever happened. But it just won't have 617 00:47:29,480 --> 00:47:33,480 comprehensive of a collision coverage if you have it. It'll still have liability. 618 00:47:33,200 --> 00:47:37,520 Right. >> But if it was to get further damage, we 619 00:47:35,520 --> 00:47:40,440 wouldn't be able to make a claim on it. Um I'm working with Chief Kidwell today. 620 00:47:39,240 --> 00:47:44,640 We'll have to work with fire, but there's certain vehicles that um 621 00:47:43,520 --> 00:47:47,320 he's going to work through what we got to do there, but we expect that yes, 622 00:47:46,160 --> 00:47:49,520 there'll be some vehicles that'll be totaled out. We'll have to buy some new 623 00:47:48,560 --> 00:47:52,560 ones. Um 624 00:47:50,880 --> 00:47:55,960 But again, we'll get insurance money for that. We'll we'll have to play that all 625 00:47:54,000 --> 00:47:59,800 out. There's a long long road ahead here for just as much as as much as the 626 00:47:57,280 --> 00:48:03,000 residents. Right. Um and if you think about the number of roofs 627 00:48:01,160 --> 00:48:06,680 that we have, we have four fire stations, public safety building, 628 00:48:04,920 --> 00:48:12,360 administration building, code department, sewer department, Willow, 629 00:48:09,840 --> 00:48:16,600 hydro plant, depot, I could keep going on with some others, DPW. It's going to 630 00:48:15,000 --> 00:48:20,680 take us a while. You know, it it we could be a year from 631 00:48:18,200 --> 00:48:24,640 now before we get all the roofs fixed and replaced and everything. And then we 632 00:48:21,960 --> 00:48:28,640 haven't even got into things like HVAC equipment 633 00:48:25,040 --> 00:48:31,960 » Mhm. other stuff like that. So, um It's It's a huge It's a huge puzzle as you 634 00:48:30,480 --> 00:48:35,438 can as you can imagine cuz you all are dealing with it so much on your on your 635 00:48:33,920 --> 00:48:38,880 own properties and then from [clears throat] your constituents. The 636 00:48:37,200 --> 00:48:43,120 The thing that we did decide is we are running this pretty centrally through uh 637 00:48:40,960 --> 00:48:48,000 the mayor's office. Obviously, insurance matters are usually clerk matters, but 638 00:48:45,240 --> 00:48:50,560 this is so operational at this point working with all the department heads, 639 00:48:49,200 --> 00:48:54,640 making sure that we have everything that's listed. Um we just decided that 640 00:48:52,800 --> 00:48:58,160 we do need like a centralized location for that so that we have one person 641 00:48:56,320 --> 00:49:02,520 basically speaking to adjusters and things like that. And David um has been 642 00:49:00,360 --> 00:49:05,120 instrumental in in that coordination along with all of our department heads 643 00:49:03,560 --> 00:49:08,880 who've been excellent reporting everything that they're supposed to let 644 00:49:06,480 --> 00:49:12,560 us know about um on top of their regular duties. So, it's it's kind of been a a 645 00:49:10,680 --> 00:49:15,680 side gig for everybody lately just worrying about the storm, right? And we 646 00:49:14,320 --> 00:49:18,800 want to get those resources out to not only our residents, but we have to take 647 00:49:17,240 --> 00:49:22,040 care of ourselves too eventually, you know, we we patched up what was 648 00:49:20,360 --> 00:49:25,720 important first, but now we have to make sure we make the long-term investments 649 00:49:23,560 --> 00:49:27,920 to protect our buildings. About time 650 00:49:26,240 --> 00:49:30,440 » Not us. About time we get some work out of Dave. 651 00:49:29,149 --> 00:49:37,064 » [laughter] >> He works so hard. I know he does. And 652 00:49:33,240 --> 00:49:37,064 that's my guy. Oh, man. [laughter] 653 00:49:37,560 --> 00:49:39,880 Thank you. 654 00:49:40,920 --> 00:49:45,320 Okay. Any other questions or comments? 655 00:49:45,720 --> 00:49:53,360 If not, is there a motion to adjourn? I'll move. Motion is there a second? 656 00:49:49,920 --> 00:49:56,560 Second. All in favor say I. Opposed? Okay, thanks everyone.