DeKalb Times

City of Sycamore City Council met April 6.

Here is the agenda provided by the council:

1. CALL TO ORDER

2. INVOCATION

3. PLEDGE OF ALLEGIANCE

4. APPROVAL OF AGENDA

5. AUDIENCE TO VISITORS

(Persons wishing to address the Council should email questions/concerns/comments prior to the start of the meeting to bgregory@cityofsycamore.com. Within your email include your name and address.)

6. CONSENT AGENDA

A. Approval of the Minutes for the Regular City Council Meeting of March 16, 2020. B. Payment of the Bills for April 6, 2019.

7. PRESENTATION OF PETITIONS, COMMUNICATIONS, AND BILLS.

A. A Proclamation Declaring April 7, 2020 as National Service Recognition Day in the City of Sycamore, Illinois.

B. A Proclamation Declaring April 2020 as Child Abuse Prevention Month in the City of Sycamore, Illinois.

8. REPORTS OF OFFICERS

9. REPORTS OF STANDING COMMITTEES

10. PUBLIC HEARINGS

A. Public Hearing on the Proposed FY2020-21 City Budget.

The Annual Budget for Fiscal Year 2020-2021 extends from May 1, 2020 through April 30, 2021. The budget document compiles the numerical and narrative budgets for each General Fund department and each of the City’s capital funds, special funds, and bond funds in one volume for easy reading and reference.

The General Fund expenditure budget totals $17,734,126. These expenditures are offset by $17,734,463 in anticipated General Fund revenues. The revenues and expenditures reflect pension contributions for fire and police passing through the General Fund. The estimated General Fund operating reserve or starting fund balance as of May 1, 2020 is $6,418,125 or 36.19% of the planned General Fund operating expenditures for FY2021.

General Fund operating expenditures continue to be constrained to meet general revenues. The City’s equalized assessed valuation (EAV) for 2019 (payable in 2020) is $472,578,869 which is roughly $26.8 million more than the prior year. The increase in EAV is a combination of a rebound in housing values and an uptick in new construction in residential, commercial and industrial developments.

The total estimated general operating expenditures (less pass thru transfers and pension contributions) in FY21 are $16,094,825 which represents an increase of 2.80%. The majority of the increase can be attributed to increases offset by corresponding revenues such as the trash removal contract and contractual wage increases.

Personnel expenses (wages, salaries, FICA, Medicare, IMRF, Police and Fire Pension) will again account for over half of the overall General Fund budget (57.23%). When combined with the cost of insurance coverage (health, life, work comp and liability), employee costs reach 72.74% of the planned General Fund expenditures. Insurance costs are assigned to the General Fund Support budget, which consists of expenditures common to the entire General Fund.

➢ The same level of service is anticipated however the budget reflects changes in the organizational structure that include moving the City’s engineering function to Public Works and the Property Maintenance function to a new Community Development Department, which includes the current Building and Zoning functions of the Building & Engineering Department.

➢ With the engineering function moving to Public Works, an entry level staff engineer will be hired as the City increases the emphasis on infrastructure maintenance and improvements.

➢ An additional swing-shift firefighter/paramedic position is included in the FY21 budget. This position will supplement manpower while reducing exposure to “fill overtime”, when staffing falls below contractual minimums.

➢ A part-time NIU MPA intern is proposed in the Administration Department.

Aside from conventional operating expenditures, other significant General Fund expenditures include the following:

➢ Debt service of $367,500 to fund the principal and interest on the 2012 refunding bond ($37,500) and the 2017 refunding bond ($330,000).

➢ An allocation of $150,000 (513-8493) to pay the FY21 sales tax rebates.

➢ An increase ($91,938) in budgeted health insurance premiums (line items 8474 & 8477), primarily attributed to higher rates.

➢ A decrease in Dispatch Services with DeKalb County ($725,000).

➢ A reserve transfer of $150,000 to the Employee Benefit Assistance Fund (Fund 23) for accrued leave payouts in the event of the retirement of several senior employees in FY2021.

The City Council has maintained a commitment to capital infrastructure improvements. This commitment honors the deep community concern about failing streets, in particular. The ability to maintain this commitment is also based, in part, on prudent fiscal measures taken in years past to segregate capital funds from operational funds, and to appropriately match such funds with uses that reflect community expectations.

Highlights of the FY2020-21 capital program are listed below:

➢ Overall, this summer’s street maintenance program involves an estimated allocation of $1,983,000 in capital funding toward street and related infrastructure repairs. This includes $575,000 from Fund 7 (Motor Fuel Tax); $1,258,000 from Fund 30 (Street Maintenance); and $150,000 from Fund 06 (Capital Assistance) to address hazardous sidewalks.

➢ Sidewalk improvements continue to be made to the most hazardous walks along the streets designated for maintenance.

➢ Completion of construction on Phase III of the Wastewater Treatment Plant.

➢ A rolling stock plan has been identified to begin a systematic rotation of front-line vehicles and equipment. The full program is outlined in the capital funds portion of the budget document.

➢ A new storage building on the Public Works campus, primarily using the funds generated from the sale of the Engh Farm storage building and the Water buildings will be constructed.

The City’s Pension obligations include the Police, Fire and IMRF pension plans. The percentage of liabilities funded in the Police Pension Fund is 66.8%, the Fire Pension Fund is 65.1% while IMRF is funded at 90.0%. The City continues to fund the minimum required contribution as calculated each year by an independent actuary.

The preliminary budget is on the City’s website at www.cityofsycamore.com, on reserve at the Sycamore Public Library and available for purchase at cost in the City Clerk’s Office. An additional public hearing will be held on April 20, 2020, at which time City Council action on the proposed FY20-21 City Budget will occur.

11. ORDINANCES

A. Ordinance 2019.53—An Ordinance Concerning the Adoption of the Combined Budget and Appropriation Ordinance for the Fiscal Year 2020-21 in the City of Sycamore, Illinois. First Reading.

Ordinance 2019.53 formally adopts the FY21 budget. This ordinance is presented on first reading only. The budget is on the City’s website at www.cityofsycamore.com, on reserve at the Sycamore Public Library and available for purchase at cost in the City Clerk’s Office. City Council action on the proposed FY21 City Budget will occur on April 20, 2020.

B. Ordinance 2019.54—An Ordinance Amending Title 1, “Administration,” Chapter 10, “Personnel Rules,” of the City Code of the City of Sycamore to Authorize Non-Elective Positions for the City of Sycamore, Illinois. First Reading.

Coincident with the adoption of the fiscal year budget, the Council establishes the employees in its budget by adopting a new list of appointments. The attached ordinance accomplishes this purpose.

This ordinance is presented on first reading only with action to be taken on April 20, 2020.

C. Ordinance 2019.55—An Ordinance Establishing Offices and Fixing the Compensation of Certain Appointed Officers of the City of Sycamore, Illinois, County of DeKalb, State of Illinois for the Fiscal Year Commencing on the First Day of May 2020 and Ending on the Thirtieth Day of April, 2021. First Reading.

The FY21 City Budget assumes certain levels of compensation for exempt employees, which include management positions and a number of part-time positions. The attached ordinance displays these levels of compensation and related benefits.

This ordinance is presented on first reading only with action to be taken on April 20, 2020.

D. Ordinance 2019.56—An Ordinance Amending Title 3, “Business and License Regulations,” Chapter 2, “Liquor Control,” Subsection 6, “Classification of Licenses; Fees; Hours and Days of the City Code of the Sycamore of Sycamore, Illinois. First Reading.

Over the past few months, the City has received requests related to potential modifications in the liquor code. Staff has reviewed the inquiries and have outlined language below that would accommodate the requests. Modifications to other sections of the code are proposed to clarify the City’s intent.

Class B License, Optional Annual Catered Events Permit

Currently, holders of Class B licenses must obtain a catered event permit to provide alcohol sales at catered events. These permits require a $25 fee as well as a $200 deposit each time an event is catered. By adding the proposed language to the Class B license, Class B license holders would be permitted the option of a one-time annual fee to serve at indoor catered events rather than having to obtain a permit for every catered event. This would streamline the administrative process for both the license holder as well as the City. Class B license holders will still be required to obtain a catered event permit for each outdoor catered event.

The following language would be added to Chapter 2: Liquor Control:

Class B license holders have the option to receive an annual permit for indoor catered events for an additional annual fee of one hundred dollars ($100.00). This additional license holder would receive an annual permit and would waive the requirement to obtain a permit for each indoor catered event.

Banquet Hall Liquor License

The new Class L license would allow liquor consumption only on the premises of special occasion facilities that are contracted for planned events, occasions, or other special events such as banquets, weddings, receptions, etc. The facility would not be open to the general public, and liquor sales would be restricted to the contracted party and his or her invited guests.

The following language would be added to Chapter 2: Liquor Control:

"Banquet Hall" shall mean a business conducted on premises at which the exclusive activity is the catering of private parties where there is service for consumption at tables of a full multiple course meal at a prearranged fixed unit price, or hors d'oeuvres, buffet or smorgasbord, and at which alcoholic liquor may be served or sold as an incident to such food services; provided that each of such private parties is prearranged under the sponsorship of a particular person or organization.

Class “L” License (Banquet Hall) shall authorize the serving and retail sale of alcoholic liquor for consumption on the premises designated therein in establishments containing banquet hall facilities and authorized for banquets as a principal use; provided that alcoholic liquor under this license may be served and sold only to invited guests. The annual fee for Class L licenses shall be two thousand dollars ($2,000.00).

Tasting Room

A new class M license would allow holders of a class D liquor license to operate a tasting room for the sale of craft beers.

Language such as the following (presented to help facilitate the discussion) would need to be added to Chapter 2: Liquor Control:

Class M, which shall authorize the holder of a Class D liquor license from the City to operate a tasting room for the sale of craft beers only for consumption on the premises. It is the intention of a Class M liquor license that the craft beer tasting room shall be an amenity and an accessory use to the primary business (Class D liquor license sales) operated by the applicant on the premises. The tasting room must be physically separated from the Class D licenses premises by walls with access through a door from the Class D licensed area. A Class M liquor license shall be subject to the following conditions and restrictions:

a. The tasting room shall only sell craft beers for consumption on the premises. No macro beers or other alcoholic liquors shall be sold for consumption on the premises from the tasting room. Craft beers for consumption on the premises may only be sold from the tasting room and not from the primary Class D licensed premises.

b. The primary Class D licensed premises may sell craft beer as a packaged item for off-site consumption. The sale of packaged goods from the tasting room is prohibited.

c. Customers may only consume the craft beers purchased in the tasting room on premises. No customer may leave the licensed premises with open alcohol.

d. The tasting room shall be limited in size to no more than 50 square feet. The tasting room must have a continuous, unobstructed passage and view to the primary Class D licensed premises.

e. No seating will be allowed in the tasting room area.

f. The tasting room shall be limited to no more than eight operational craft beer taps at one time.

g. The hours of operation of the tasting room shall be limited to 3:00 p.m. to 10:00 p.m. on all days, unless specific permission for additional hours of operation are granted by the liquor commissioner.

h. The license holder must inform the local liquor commissioner at least 48 hours in advance of any special events where larger than normal crowds are expected. Special events may include, but are not limited to, the release of rare, specialty craft beers. The license holder shall obtain a special event permit.

Tasting sizes for sale are limited to the following quantities:

i. By the glass, having a capacity of not more than 4 ounces.

ii. By the flight, having not more than three glasses with each glass containing a capacity of not more than four ounces.

i. All persons serving craft beers in the tasting room for consumption on the premises must be BASSET certified.

j. The tasting room shall comply with all building, fire and other codes of the city.

The annual fee for Class M licenses shall be two hundred and fifty dollars ($250.00).

Video Gaming Café

Since the establishment of Video Gaming Café license (class VG) in 2019, class B license holders that operate video game terminals must maintain at least 51% of their gross receipts from food and beverage sales and dedicate no more than 25% of their floor space to video gaming. The purpose was to ensure that any licensee with a Class B license maintains the sale of alcoholic liquor as its primary business function. The proposed language further clarifies this calculation by adding a definition of net income from vendors of video gaming terminals. Net income is now defined as the money put into a video gaming terminal or any other vendor operating/owned machine, minus credits paid out to players. In order to maintain a Class B license, gross receipts from food and beverage sales must be at least 51% of the total of food and beverage gross receipts plus the net income from the video gaming terminals.

3-2-1. Net Income from Vendors: money put into a video gaming terminal or any other vendor operating/owned machine, minus credits paid out to players.

3-2-6-A-3. Class B; Bar: Class B licenses authorize the retail sale of alcoholic liquors where the primary purpose of the establishment is for the on-site consumption of such alcoholic liquors on the premises, where food service may or may not be included. This license shall apply to establishments where the sale of alcoholic beverages for consumption on premises constitutes at least eighty percent (80%) of the gross annual receipts for alcoholic beverages. Bars may also sell package liquors, but under no circumstances may a bar be converted to a package goods store unless the location is in conformance with the provisions of this Code and by the licensing authority of the Illinois Liquor Control Commission. The annual fee for Class B licenses shall be two thousand dollars ($2,000.00). Bars that sell package goods shall pay an additional annual fee of two hundred fifty dollars ($250.00). Bars with State video gaming licenses must generate at least fifty one percent (51%) of its income from beverage and food sales and dedicate no more than twenty five percent (25%) of floor space to video gaming in order to maintain eligibility for a Class B license. For purposes of calculating “income,” the City will use the actual profit derived from beverage and food sales and the net income from vendors of video gaming terminals or any other machine owned or operated by a vendor. Therefore, the actual profit derived from beverage and food sales must be at least fifty one percent (51%) percent of the total economic activity entering the licensed establishment, including any vendor operated devices. The purpose of this calculation is to ensure that any licensee with a Class B license maintains the sale of alcoholic liquor as its primary business function and source of revenue.

12. RESOLUTIONS—None

13. CONSIDERATIONS—None

14. OTHER NEW BUSINESS

15. APPOINTMENTS

16. ADJOURNMENT

https://cityofsycamore.com/wp-content/uploads/2020/03/20200406a.pdf