DeKalb Times

City of Sycamore City Council met Nov. 18.

Here is the minutes provided by the Council:

Roll Call

Mayor Lang called the meeting to order at 7:00 p.m. and City Clerk Mary Kalk called the roll. Those Alderpersons present were: Chuck Stowe, Alan Bauer, Steve Braser, Nancy Copple, Josh Huseman, Rick Kramer, Pete Paulsen, and Virginia Sherrod. City Attorney Keith Foster was also present.

Invocation – Pastor Jason Draper, Harvest Bible Chapel, gave the invocation.

Pledge of Allegiance - Led by North Grove Elementary Girl Scout Troop 907 Students

Approval of Agenda

Motion

Alderperson Kramer motioned to approve the agenda and Alderperson Sherrod seconded the motion.

Voice Vote

Mayor Lang called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 8-0.

Audience to Visitors - None

Consent Agenda

A. Approval of the Minutes for the Regular City Council Meeting of November 4, 2019.

B. Plan Commission Minutes from September 9, 2019.

C. Payment of the Bills for November 18, 2019 in the amount of $768,468.81.

Motion

Alderperson Bauer moved to approve the Consent Agenda and Alderperson Stowe seconded the motion.

Roll Call Vote

Mayor Lang called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Kramer, Paulsen, and Sherrod voted aye. Motion carried 8-0.

Presentation of Petitions, Communications, and Bills

Alderman Kramer thanked, from the bottom of his heart, the Council and Department Heads, for their show of support with everyone wearing the “Spider” tee shirts. He said he was really humbled by it and it just goes to prove what a great city it really is. He said “God Bless all of you”.

Mayor Lang thanked Spider and said prayers continue to be with him and his family.

A. Presentation of Community Economic Development Planning Grant from the DeKalb County Community Foundation.

City Manager Brian Gregory said that members of the DeKalb County Community Foundation are here to present a $20,000 grant to the city as part of the Community Economic Development Planning program which helps all communities in DeKalb County. Resource Bank has partnered with the Community Foundation to award grants of $500. Both of these grants will be used towards the City’s 2020 Comprehensive Plan.

Beth Bollinger, Teri Spartz, and Dan Templin presented Mayor Lang, John Sauter, Maggie Peck, and Brian Gregory the grants.

Mayor Lang said that this is another way that Sycamore works where we are supported by our service clubs and our Community Foundation. He said they are really grateful and thanked them again.

Report of Officers

City Manager – Brian Gregory said in the spirit of grants, he shared that a $75,000 grant was submitted a year ago for the library windows and has gotten approved. He recognized Adam Orton who has done a lot of the work with the State and several other State agencies. The Council will see an Intergovernmental Agreement (IGA) between the City and the library on December 2nd as the City is the applicant and will administer to the library. It’s very exciting and is definitely an injection on a crown jewel in our downtown. Regarding the Comprehensive Plan (Comp Plan), he reminded everyone that this is how we want our city to look for the next 25 or 30 years and it will be updated every five years. There will be public meetings and so it is important for everyone to participate in order to gather as much input as they can. The Mayor’s Ad Hoc Committee on Growth Management, which looks at land values, impact and connection fees, met October 30th to review land values. The new appraisal will preliminarily take that land value down 6.59 percent. The formulas will be brought back to the Ad Hoc Committee in early December ultimately coming to the Council for potential modification at the second meeting in December, effective January 1st. Lastly, he spoke with Brian Grainger of Old Mill Park who said Curran will be doing paving the week of Thanksgiving.

Police Chief – Jim Winters said the Police Department would like to remind everyone, as we enter into the holiday season, to be careful when on-line shopping and arranging for home deliveries. He said to make sure you are using secure and trusted websites and do not use public Wi-Fi networks. As always, when shopping in our brick and mortar stores, make sure you secure your packages and lock your car doors to take away those crimes of opportunity. He added that it is nice to see Spider here tonight.

Fire Chief – Pete Polarek said the Pancake Breakfast that was held last week had good community support and thanked everyone who attended. They are wrapping up Sweets for Troops and said they had a lot of response. The College Intern Program will be advertising in two weeks for applications. It’s a great program that prepares young adults for a career in fire service. There will be a few press releases later this week on Thanksgiving safety, including turkey fryers. The Red Wreath program will kick off on Thanksgiving Day until after January 1st

.Director of Public Works – Fred Busse said that after a one week set back with the Leaf Pick Up Program, they are back on the streets with two machines. They plan on extending the pick-up period until after Thanksgiving. The dumpster, for residents to drop off bagged leaves, will be at the Public Works building on November 29th for two weeks. Waste Management will pick up yard waste through November.

Treasurer/Asst. to the City Manager – Adam Orton said the October Treasurer’s Report that’s on a cash-basis has a benchmark of 50 percent. The State, Home Rule, and Restaurant and Bar sales tax are all near the budgeted benchmarks. State Income Tax is strong at 62 percent and the Service Charges are up at 92 percent which are being bolstered by ambulance and annexation fees and quarterly payments for the Fire Protection District. Overall revenues are at 59 percent but is at 54 percent when weighted with property taxes. Expenditures are at 48 percent and both the pension funds had decent gains. He also mentioned that, like last year, the City and the Park District will be partnering so that residents can purchase their dog park tag at the same time they purchase their City dog tag from December 1st through March 15th. After that, they will have to purchase the dog park tag at the Park District. He said a big thanks to the City Clerk’s office and her staff who work to make this possible. This is another example of intergovernmental cooperation.

Building and Engineering Director – John Sauter said they issued a footing and foundation permit for the new Seymour building on Crosby Avenue this week. Work is expected to begin immediately so they can complete the building foundation before more winter weather. The interior of the Meijer store is making progress. The concrete floor is complete and the coolers in the grocery section have been installed. The General Contractor said they still plan on completing as much of the exterior work as weather will permit, but he expects that it will be a “fire drill” in the spring to button things up for the Grand Opening.

Director of Human and Administrative Resources (DHAR) – Maggie Peck said the new mechanic started today. The new laborer that was hired will start December 16th. She thanked everyone and their families who were able to participate in Feed My Starving Children.

City Engineer – Mark Bushnell said the water study and smoke testing report are both progressing well. The smoke testing revealed some areas where they can make some quick and cheap repairs to eliminate inflow and infiltration. They met with the water study consultant last week. Public Works, the Fire Department and myself reviewed the water system model and the available fire flows around town. They are currently in the process of reviewing potential improvements that would increase fire flows and improve water quality.

Reports of Standing Committees

Finance – Alan Bauer - no report

Public Safety – Pete Paulsen - no report

Public Works – Chuck Stowe - no report

Public Hearings – None

Ordinances

A. Ordinance 2019.32—An Ordinance Approving a Request by Greg LeSage, President of Tech Weld Inc., for a Special Use Permit to Operate a Welding and Welding Equipment Use, as Required by Article 5.3.1.E of the Sycamore Unified Development Ordinance, at 805 Thornwood Drive in the City of Sycamore, Illinois (PIN number 09-06-426-014). First and Second Reading.

The City Manager Brian Gregory said that this comes from the Planning and Zoning Commission (PZC) with a favorable recommendation by a vote of 9-0. He gave background from the agenda that Tech-Weld is a family-owned and operated business that is currently located in Elburn, Illinois and who has a contract to purchase the former Smart Motion Robotics building which is over 30,000 square feet. They do precision welding and TIG welding for the aerospace, aviation, and farming industries, and for government defense contracts. According to the City’s Unified Development Ordinance (UDO), Welding and Welding Equipment Uses require a Special Use Permit within M-1 zoning. Greg LeSage, the founder and President of TechWeld has submitted a petition for a special use permit that would enable his company to relocate to Sycamore. They had an opportunity to visit their location in Elburn and they came away very impressed. A School District Representative who also visited said that the high school even has some of the equipment that Tech-Weld has and talked about ways that the school district and the company may be able to be involved with each other. It is a good fit and appreciates their investment here in Sycamore. The PZC concurred after reviewing against the criteria below:

Per Section 4.3.3 of the City’s Unified Development Ordinance, a Special Use Permit shall be granted only if evidence is presented to establish that:

A. The proposed structure or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public and will contribute to the general welfare of the neighborhood or community;

B. The proposed structure or use will not have a substantial adverse effect upon the adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety, and general welfare; and

C. The proposed structure or use will be designed, arranged, and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations.

Motion

Alderperson Huseman moved to waive First Reading for Ordinance 2019.32 and Alderperson Copple seconded the motion.

Voice Vote

Mayor Lang called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 8-0.

Motion

Alderperson Huseman moved to adopt Ordinance 2019.32 and Alderperson Copple seconded the motion.

Roll Call Vote

Mayor Lang called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Kramer, Paulsen, and Sherrod voted aye. Motion carried 8-0.

Greg LeSage introduced his wife, Linda, son, Jeff, Plant Manager, son, John, Sales Manager, and daughter-in-law, Christine who isn’t present tonight. He said it’s nice to be here and thanked the Council and said their door is always open for a tour.

B. Ordinance 2019.33—An Ordinance Approving Amendments to Article 1.3, Definitions, to include Definitions for the Regulation and Sale of Recreational Cannabis – Adult Use and Modifications to Article 5.2, Conditions of Use and Article 5.3, Permitted Uses of the Unified Development Ordinance of the City of Sycamore, Illinois. First and Second Reading.

City Manager Brian Gregory said the City Council approved adult use dispensaries on November 4th by a vote of 4-2. This is the zoning regulations that were referred to in that ordinance. On November 11th, the PZC gave a favorable recommendation by a vote of 9-0. He walked through the following as written in the agenda:

Article 1.3, Definitions (add new definition)

Cannabis, Recreational – Retail Dispensing Organization (Adult Use): A facility operated by an organization or business that is licensed by the Illinois Department of Financial and Professional Regulation to acquire cannabis from licensed cannabis business establishments for the purpose of selling or dispensing cannabis, cannabis-infused products, cannabis seeds, paraphernalia or related supplies to purchasers or to qualified registered medical cannabis patients and caregivers, per the Cannabis Regulation and Tax Act, (P.A.101-0027), as it may be amended from time-to-time, and regulations promulgated thereunder.

Article 5.2, Conditions of Use (create new section)

All uses involving the sale or dispensing of adult use recreational cannabis shall be subject to the following additional conditions:

1. Dispensaries must be a minimum of 1,000 feet from the property line in all directions of any pre-existing public or private preschool or elementary or secondary school or daycare center, daycare home, group daycare home, part day childcare facility and cannot be in an area zoned residential. A 250-foot setback to residential-zoned property is required.

2. On-premises cannabis consumption within any district is prohibited.

3. Craft-growers, or any other dispensary or retail location other than those defined under the “Cannabis, Recreational – Retail Dispensing Organization (Adult Use)” definition in Article 1.3 are prohibited.

4. A minimum separation of 1,500 feet between cannabis dispensaries is required.

5. No drive-thru dispensaries are allowed.

6. Business hours are limited to 6:00 a.m. to 10:00 p.m. for dispensaries per State law.

7. A maximum of one (1) dispensary shall be permitted for every 9,000 in population. A three-fourths (3/4) vote of the Corporate Authorities shall be required to waive the population proration to accommodate an additional dispensary.

8. No dispensary shall operate before January 1, 2020.

Article 5.3, Table of Permitted Uses

The table of permitted uses will be amended to outline and differentiate medical and adult-use cannabis dispensaries and calls for both to require a special use permit within C-3, Highway Business Zoning as follows:

K. Retail Trade Uses AG R-1 R-2 R-3 R-4 C-1 C-2 C-3 C-4 M-1 M-2 ORI

Camera and Photographic Sales, Supply Store P P

Cannabis, Medical – Retail Dispensing Organization S

Cannabis, Recreational – Retail Dispensing Organization(Adult Use) S

Carpet, Rug, Linoleum Store/Showroom P P

He continued that a public hearing was held at the PZC meeting on November 11th and there was no one in the audience that spoke to this matter. Again, it comes with a favorable recommendation was made to the City Council by a vote of 9 to 0.

Alderman Braser asked when the 2020 Census results will be available and said it’s silly that we would restrict ourselves for that second dispensary when we are almost assured we will surpass that 18,000 mark by that time.

City Manager Brian Gregory said within a year of the April 1st census date and said yes, we would surpass the 18,000 mark. It is a balance of “wait and see” with the fact that the way the State is rolling out the licenses there won’t be many available for our area. Nonetheless, the way this is written, the Council can come back and add another license if they so choose to.

Motion

Alderperson Stowe moved to waive First Reading for Ordinance 2019.33 and Alderperson Paulsen seconded the motion.

Voice Vote

Mayor Lang called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 8-0.

Motion

Alderperson Stowe moved to adopt Ordinance 2019.33 and Alderperson Paulsen seconded the motion.

Roll Call Vote

Mayor Lang called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Kramer, Paulsen, and Sherrod voted aye. Motion carried 8-0.

C. Ordinance 2019.34—An Ordinance Approving a Request by Andrew Christensen on Behalf of Pet IQ, for a Special Use Permit to Operate a Veterinary Clinic as Required by Article 5.3.1.A of the Unified Development Ordinance at 541 Puri Parkway, Unit C in the City of Sycamore, Illinois (PIN number 06-31-330-011). First and Second Reading.

City Manager Brian Gregory said that this comes from the PZC with a favorable recommendation by a vote of 9-0. This is straight forward as the UDO requires a Special Use for veterinary clinics. Pet IQ, who provides health and wellness for animals, has an agreement with Meijer to lease unit C to operate Vet IQ within the store at 541 Puri Parkway. Services provided include vaccines, minor illness treatments, prescriptions, nail trims, retail pet health and wellness products, and microchipping. No major surgeries, boarding, kenneling or overnight stays are planned. VetIQ will have an entrance and exit that is separate from Meijer, therefore pets will not have access to the retail store at any time. The UDO, requires a special use to operate a Veterinary Clinic within C-3, Highway Business District Zoning.

Table 5.3.1

A. Agricultural Uses AG R-1 R-2 R-3 R-4 C-1 C-2 C-3 C-4 M1 M2 ORI

Stable, private P P

Stable, public S

Uses customarily accessory to farming operations P

Veterinary Clinic S S S

Key: P = Permitted Use S = Special Use T = Temporary Use

Per Section 4.3.3 of the City’s Unified Development Ordinance, a Special Use Permit shall be granted only if evidence is presented to establish that:

A. The proposed structure or use at the particular location requested is necessary or desirable to provide a service or a facility which is in the interest of the public and will contribute to the general welfare of the neighborhood or community;

B. The proposed structure or use will not have a substantial adverse effect upon the adjacent property, the character of the neighborhood, traffic conditions, utility facilities and other matters affecting the public health, safety, and general welfare; and

C. The proposed structure or use will be designed, arranged, and operated so as to permit the development and use of neighboring property in accordance with the applicable district regulations.

Motion

Alderperson Kramer moved to waive First Reading for Ordinance 2019.34 and Alderperson Sherrod seconded the motion.

Voice Vote

Mayor Lang called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 8-0.

Motion

Alderperson Kramer moved to adopt Ordinance 2019.34 and Alderperson Sherrod seconded the motion.

Roll Call Vote

Mayor Lang called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Kramer, Paulsen, and Sherrod voted aye. Motion carried 8-0.

D. Ordinance 2019.35—An Ordinance Providing for the Transfer of Land from the City of Sycamore to the Illinois Department of Transportation. First and Second Reading.

City Manager Brian Gregory said that this ordinance and Resolution 806 are companion items both dealing with land that will be transferred to facilitate the Park District’s Vision 2020 to connect the Great Western Trail from the Sycamore Forest Preserve to Old Mill Park. The City will transfer 0.251 acres at the southeast corner of North Walnut and East Page Streets to the Illinois Department of Transportation (IDOT). In return, the City will acquire 1.085 acres along Pleasant Street. This ordinance approves the transfer of the 0.251-acre site. Resolution 806, below outlines the City’s intent to accept the 1.085 acre parcel from IDOT and grant permission to the Sycamore Park District to construct a trail on the northern edge. He noted that trails and connections were one of the things noted in the 2014 Comprehensive Plan and that it is a community effort. This is a no compensation transfer of land.

Mayor Lang said this is great deal as trails are important to all of us and is a wise decision. Alderman Braser asked if it will be either the Park District’s or the City’s responsibility to maintain that IDOT property. City Manager Brian Gregory said no, the property they acquire will likely be consolidated with their yard. The Park District will be responsible for the trail.

Motion

Alderperson Braser moved to waive First Reading for Ordinance 2019.35 and Alderperson Kramer seconded the motion.

Voice Vote

Mayor Lang called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 8-0.

Motion

Alderperson Braser moved to adopt Ordinance 2019.35 and Alderperson Kramer seconded the motion.

Roll Call Vote

Mayor Lang called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Kramer, Paulsen, and Sherrod voted aye. Motion carried 8-0.

Resolutions

A. Resolution 806—A Resolution Confirming Acceptance of Property Transfer from the State of Illinois.

City Manager Brian Gregory said this would be the City’s intent to accept the property and the City’s intent to allow the Park District to construct the trail on the back edge. He acknowledged Nathan Schwartz, County Engineer, who has been involved in this process which is two years in the making. He has volunteered his time and will take this down State tomorrow to keep the process rolling. The Park District has secured grant funding from the State of Illinois to make this connection which will be let in January 2020. Construction is expected to begin in spring 2020.

Motion

Alderperson Stowe moved to approve Resolution 806 and Alderperson Paulsen seconded the motion.

Roll Call Vote

Mayor Lang called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Kramer, Paulsen, and Sherrod voted aye. Motion carried 8-0.

Considerations

A. Consideration of the Annual Property Tax Levy in the City of Sycamore.

City Manager Brian Gregory said the City Council is required to adopt the annual property tax levy by the end of the calendar year. A total of nine local taxing bodies, including the City, annually receive operating revenue from property taxes. Tonight will be some options and from this discussion, will come as First Reading on December 2nd and for action on December 16th. He reviewed the following from the agenda.

The combined or composite property tax rate for residences and businesses located in Sycamore was $9.99967 per $100 EAV in 2018. The City’s rate—$0.687—represented 6.87 percent of the overall rate applied against the EAV of our residences and businesses. A breakdown of how property tax dollars are distributed is illustrated below:

The City of Sycamore uses the monies raised through property taxes primarily to fund the general operations of the City departments but also uses a substantial portion of the collected taxes to fund pension obligations. The table below shows the breakdown of the annual levy including operational and pension obligations in recent years:

Fire and Police Pension

The City’s actuary has submitted actuarial assumptions for the Police and Fire Pension Funds indicating the required contribution using two options; a goal of 100 percent funding and the minimum required contribution with a 90 percent funding goal.

The City uses a balanced approach to fund at least 90 percent ($601,726 for Police and $774,374 for Fire), while utilizing the levy or transferring alternative funds from other sources to ensure the contribution exceeds the minimum required by law. Toward that end, the City has contributed an additional $205,000 to both the Fire and Police Pension Funds over the past three fiscal years.

The annual required contribution is funded by the property tax levy and a portion of personal property replacement tax receipts. The personal property replacement tax receipts are estimated to be $29,483 for the Police Pension Fund and $44,154 for the Fire Pension Fund next year. After deducting the PPRT portion, the levy required to meet the minimum is $730,220 (+10.73 percent) for Fire and $572,243 (-6.58 percent) for Police.

The assumptions discussed below outline levy requests that ensure the minimum 90 percent threshold is met through the property tax levy. During the budget process or after the annual audit is presented each year, the City will work to determine if an alternative source can be added to the levy to ensure it exceeds the state requirement.

IMRF, Social Security and Medicare

The City’s IMRF and FICA (Social Security and Medicare) obligations are calculated by the City Manager. The IMRF/FICA obligations for Water Division and Treatment Plant employees are paid from the Water and Sewer Enterprise Funds. Altogether, IMRF, FICA, Fire and Police Pensions costs for which levies were voted in 2018 ($1,608,949) constituted 52.56 percent of the City’s property tax receipts. As a point of reference, in FY01, pension obligations constituted 24 percent of the City’s property tax receipts.

The City’s combined obligation to Social Security and Medicare is 7.65 percent. Apart from Fire and Police personnel, fulltime employees contribute to the Illinois Municipal Retirement Fund (IMRF). IMRF accumulates money needed to pay benefits from member and employer contributions and from investment returns. The Fund was 90.0 percent funded as of the end of 2018 after reducing the investment return assumption from 7.5 percent to 7.25 percent. With the change in the investment return IMRF has provided communities an option to phase-in the impact by limiting the contribution rate by 10 percent per year. As a result, the regular IMRF contribution rate for 2020 is estimated to be 8.84 percent. Unlike the direct levy contributions for the Fire and Police pension plans, the City is required to make contributions to IMRF bi-weekly as the rate (currently 8.04 percent) is applied against each payroll. The City has maintained the same levy for IMRF, Social Security and Medicare ($337,175) since 2011 and the same is again proposed for 2019.

The combined Fire and Police Pension Fund, IMRF, FICA and Medicare levy contributions total $1,639,638 for 2019.

Calculating the Levy and Rate

The starting point when considering the property tax levy is to estimate the City’s equalized assessed valuation (EAV) for the coming year. Sycamore’s final rate setting EAV in 2018 was $445,724,508. The County Supervisor of Assessment’s preliminary estimates for the City’s EAV for 2019 is $472,578,869 (+6.02%), which includes $7,676,277 in new construction.

This estimate includes deductions for exemptions, the senior freeze, appeals, and TIF. Since the actual EAV for 2019 will not be known until the final tax extension is published next spring, the actual City tax rate, determined by dividing the City levy by the City EAV, will be uncertain. If the actual EAV published next spring is not as high as the projected level, the final City rate may be slightly higher than expectations discussed below.

Historic City EAV, City Levy and City Tax Rate Totals:

As a home rule community, the City and the Library (a component unit of the City) are not subject to the provisions of the Property Tax Extension Limitation Law, commonly referred to as “tax caps.” However, where possible the City has chosen to levy within the extension limitation for the year, which for “capped” taxing bodies means the lesser of 5 percent or the percentage increase in the Consumer Price Index during the twelve month calendar year preceding the levy year. For 2019 extensions, the County’s cap has been established at 1.9 percent.

The City has worked to reduce its reliance on property taxes as a percentage of general operating expenditures. This has been accomplished through a combination of fiscal restraint and moving toward more reliance on less regressive alternative revenue sources, such as sales tax. In 2000, property taxes made up 25.7 percent of all general operating revenues. Since that time, property tax dollars as a percentage of general operating revenues has consistently declined. Property taxes as a percentage from 25.7 percent in 2000; 18.5 percent in 2005; 14.4 percent in 2010 to approximately 12 percent in 2015 (without levy pass-through pension contributions). This number was 11.38% in 2019 (FY20) and looks to be reduced each year as expenditures rise with inflation and pension obligations continue to increase.

Although the City continues to present and deliver balanced budgets, bond rating agencies review finances for predictability. Property tax revenue presents more predictability than more volatile sources such as sales tax. One way this can be offset is by increasing the general fund reserve policy target. At the end of FY19, the City’s fund balance was 37.58 percent of total general fund expenditures (consistent with a 4-5 month reserve policy).

He reviewed the options shown in the agenda and recommended Option #3.

Option #3: Maintain Levy and Apply Rate to New Construction

Overall Impact:

- Should result in a City tax rate of 0.65851.

- The total levy is $3,111,974 (1.65 percent overall increase attributed to new construction); with $1,452,336 going to general operations.

- The levy is maintained at the 2018 level and then applied to existing EAV to calculate the rate of 0.65851.

- The rate is then applied to new construction EAV of $7,676,277.

- Property Taxes minus the portion going directly to the Police and Fire Pension funds would represent only 11.54 percent of all budgeted FY20 General Fund expenditures, less pass-thru pension transfers ($15,685,376).

- Increases the funds available for general operations by $19,860.

Resulting Impact on Single-Family Homeowner: With each of the options, residents want to know what the impact is on their home. The chart below shows the estimated change in the City tax bill for a $200,000 home in 2018 (payable in 2019) and the same home in 2019 (payable in 2020) which is now valued at an estimated $208,602 based on the average increase in EAV (4.30 percent):

2018 2019

Property EAV 66,667 69,534

City Tax Rate 0.6868 0.6585

City Tax Bill $457.90 $457.89

Difference ($0.01)

He recommended the balanced approach in option #3 as:

Option #3: Maintain Property Tax Levy for General Operations meets the City’s stated financial goals and obligations:

- State requirements for funding pensions are met.

- Although not subject to “tax caps” as a home-rule unit, the City would stay within the inflationary limit applied to other taxing bodies.

- Should result in a City tax rate of 0.65851.

- The total levy is $3,111,974 (1.65% overall increase attributed to new construction); with $1,452,336 going to general operations.

- The levy is maintained at the 2018 level and then applied to existing EAV to calculate the rate of 0.65851.

- The rate is then applied to new construction EAV of $7,676,277.

- Property Taxes minus the portion going directly to the Police and Fire Pension funds would represent only 11.54 percent of all budgeted FY20 General Fund expenditures, less pass-thru pension transfers ($15,685,376).

- Increases the funds available for general operations by $19,860.

- The property tax rate decreases by 4.12 percent and homeowners should pay the same amount to the City as last year.

Mayor Lang said he appreciates the work Brian has done and said it is amazing.

Alderman Bauer said he agrees with option #3. He said to keep it flat when all the costs in the City are going up each year really shows a lot of fiscal conservative responsibility. He also said in reference to the dollar bill, the biggest bang for the buck he gets is with the City. He gets high quality police protection, high quality fire protection, high quality ambulance service, and outstanding snow removal service all for just 6.87% of the total tax bill. It’s remarkable and he appreciates that.

Alderman Stowe said he agrees with option #3 and that it’s really instructive to look at the city tax rate. It was.7 back in 2012 and then 1.64 in 1986. It’s almost a little less than half of what it used to be. Great work from all the City Departments, Brian, and Finance.

Alderman Huseman said, with the number of texts he received when the property tax bills came out, it was nice to be able to remind the residents of the City’s portion. The feedback that he got from the residents was to keep it as easy as you can so he thinks option #3 does that and supports it as well.

Alderman Kramer said they have been doing this the last couple of years and the biggest impact is on single family homes. He’s good with any time they can save a couple of pennies and likes option #3.

Alderpersons Paulsen, Sherrod, Copple, and Braser all agree with option #3.

City Manager Brian Gregory said the Councils have taken a very deliberate approach to drive down the burden on the property tax side, at least the City portion. Regarding a recession and the budget, they look at the reserves and try to make ourselves recession proof knowing this is the way they look at property taxes. He said there are people who do call when looking at the tax bills and say thank you for holding the line.

B. Consideration of the Sycamore Library Annual Property Tax Levy.

City Manager Brian Gregory said the Library, which is a component unit of the City met on November 12th and is recommending the same approach with option #3.

The Library has decided to request a 1.65 percent increase in its levy bringing it to $1,157,648. As a result, the Library tax rate decreases 4.13 percent from 0.25551 (2018) to 0.24497 (2019) as a result of the estimated increase in the estimated community EAV.

Resulting Impact on Single-Family Homeowner: With each of the options, residents want to know what the impact is on their home. The chart below shows the estimated change in the City tax bill for a $200,000 home in 2018 (payable in 2019) and the same home in 2019 (payable in 2020) which is now valued at an estimated $208,602 based on the average increase in EAV (4.30 percent):

2018 2019

Property EAV 66,667 69,534

Library Tax Rate 0.25551 0.24497

Library Tax Bill $170.34 $170.34

Difference $0.00

The City Council is obliged to pass through the Library’s levy request, provided the annual Library levy does not exceed.6 percent of the community’s EAV ($2,835,473 based on the estimated EAV). Executive Director, Monica Dombrowski, has prepared a draft budget for the City Council and will be available to answer questions or provide clarification.

Combined, the City and Library levies make-up the corporate levy. Based on the options recommended above, the corporate levy totals $4,269,635, which represents a 1.65 percent increase. Current taxpayers should see little change in the amount of taxes paid to the City of Sycamore and Sycamore Public Library in 2020 as new construction accounts for any new dollars being added to the proposed levy.

It is customary for the City to hold a Public Hearing regarding the corporate property tax levy. The City Manager intends to hold a public hearing on the corporate property tax proposal on December 2nd along with a first reading on the levy ordinances.

Library Director Monica Dombrowksi shared that during conversations about the budget, it appeared that there was some confusion about the intergovernmental agreement (IGA) with the School District. There was feedback from taxpayers that their taxes were being raised to help support this agreement which is absolutely not the case. She handed out a flyer to help explain if anyone approaches the Council. She said they have only been hearing positive stories about the IGA and said they would answer and discuss any questions. She introduced the Library Board members, Kyle Von Schnase, Elizabeth Coats, Melissa Kendzora-Smith, and Youth & Teen Services Manager Lisel Ulaszek.

C. Consideration of a Police Department Recommendation to Purchase a 2020 Ford Explorer Base Model through the Suburban Policing Cooperation Contract #191 from Kunes Country Ford of Antioch in the amount of $28,734.00.

City Manager Brian Gregory said bids were solicited to replace a 2008 Dodge Caravan which is beginning to have mechanical issues and which is due for fleet rotation. In October a Request for Proposal for a 2020 Ford Explorer Base Model with 4WD was announced in the local newspaper. A price was also obtained from the Suburban Purchasing Cooperative (SPC) which is a joint purchasing program sponsored by the Northwest Municipal Conference (NWMC), DuPage Mayors and Managers Conference (DMMC) South Suburban Mayors and Managers Association (SSMMA), and Will County Governmental League (WCGL). The SPC awarded a cooperative contract to Kunes Country Ford following a competitive bid process for this vehicle.

The received bids and cooperative price through SPC are as follows:

Company Vehicle Bid

Brad Manning Ford, DeKalb $31,115.88

Kunes Country Ford, Antioch $28,734.00

Schimmer Ford, Peru $29,907.69

He said with the trade-in value of the 2008 Dodge Caravan ($4,000) the total cost will be within the FY20 budget allocation of $27,500.

Motion

Alderperson Kramer moved to approve the bid for $28,734 to Kunes Country Ford and Alderperson Paulsen seconded the motion.

Roll Call Vote

Mayor Lang called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Kramer, Paulsen, and Sherrod voted aye. Motion carried 8-0.

D. Consideration of a Public Works Department Recommendation to Authorize an Increase in the Approved Funding for Repairs of Well #6.

City Manager Brian Gregory reviewed the background for pulling Well #6 for maintenance and repair and that the scope of the work was unknown at the time the Council approved up to $170,000. This is here tonight because those repairs exceeded that number based on:

• Additional Time to Pull and Reinstall Pump

Proposed labor to pull the well was 30 hours and ended up taking 47 hours. It is anticipated that the installation of the pump will take longer than 30 hours. This results in an increase of approximately $26,400

• Bridge

Since publishing the agenda, Assistant Director of Public Works Matt Anderson found that well was actually filled up at the 796 foot mark in an effort to reduce the barium in the water. So the work on the bridge has been removed as it is unnecessary and can be taken out of the project.

• New Pump

After pulling and inspecting the pump, it was determined that there was too much wear to justify rebuilding it. The current pump has been rebuilt 3 times and given that pulling and re-installing the pump costs over $100,000, the most fiscally prudent answer is to install a new pump that will require less maintenance. The new pump will be made of stainless-steel and should have a much longer useful life than the current cast iron pump. The new pump cost is $59,640, which results in an additional cost over the originally proposed rebuild of $38,700.

He recommended the approval of up to an additional $80,000 for the repair and said this project will be funded from reserves in the Water Fund. Municipal Well and Pump representative Dick Milaeger is present to answer any questions.

Alderman Kramer said third time is the charm and said he doesn’t want to have to rebuild another one.

Brian Gregory said there is a sense of urgency as there is a four week lead time on the new pump and the other well is due for a media exchange. They want to keep three wells in service and need to get this one back in service.

Motion

Alderperson Bauer moved to approve additional funding of $80.000 and Alderperson Stowe seconded the motion.

Roll Call Vote

Mayor Lang called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Kramer, Paulsen, and Sherrod voted aye. Motion carried 8-0.

Director of Public Works Fred Busse said that rebuilding that pump three times is probably an underestimate as research shows that parts of that pump are the original from the 1970’s. He said putting in a new pump is definitely the right way to go.

Dick Milaeger, Municipal Well & Pump thanked Sycamore and the City Council for having the confidence in his firm and said that they have enjoyed an honest working relationship with the City of Sycamore for 30-40 years. He has been in the business for 51 years and it goes back to his grandfather in 1916. There is a reason they have been around that long.

Other New Business

Appointments

Adjournment

Motion

Alderperson Stowe moved to adjourn the meeting at 8:20 p.m. and Alderperson Paulsen seconded the motion.

Voice Vote

Mayor Lang called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 8-0

https://cityofsycamore.com/wp-content/uploads/2019/12/cc20191118m.pdf