DeKalb Times

City of Dekalb City Council and Finance Advisory Committee met Nov. 18.

Here are the minutes provided by the committee:

The City Council and the Finance Advisory Committee of DeKalb, Illinois, held a Joint Special meeting on November 18, 2024, in the Yusunas Meeting Room of the DeKalb Public Library, 309 Oak Street, DeKalb, Illinois, called pursuant to Chapter 2 "City Council", Section 2.05 "Special Meetings", of the Municipal Code of the City of DeKalb, Illinois.

A. CALL TO ORDER

Mayor Barnes called the meeting to order at 6:00 p.m.

B. ROLL CALL

1. City Council

Recording Secretary Ruth Scott called the roll, and the following members of the City Council were present: Alderman Carolyn Zasada, Alderman Barb Larson, Alderman Tracy Smith, Alderman Greg Perkins, Alderman Mike Verbic, Alderman John Walker, and Mayor Cohen Barnes. Alderman Andre Powell was absent.

2. Finance Advisory Committee

Recording Secretary Ruth Scott called the roll, and the following members of the Finance Advisory Committee were present: Chair Lynn Neeley and members Linda Babcock, Paul Callighan, and Tom Teresinski.

Others in attendance included City Manager Nicklas, Assistant City Manager Bob Redel, and Director of Financial Services Susan Hauman.

C. APPROVAL OF THE AGENDA

City Council

MOTION: Alderman Smith moved to approve the agenda; seconded by Alderman Walker.

VOTE: Motion carried by a 7-0-1 roll call vote. Aye: Zasada, Larson, Smith, Perkins, Verbic, Walker, Barnes. Nay: None. Absent: Powell. Mayor Barnes declared the motion passed.

Finance Advisory Committee

MOTION: Ms. Babcock moved to approve the agenda; seconded by Mr. Teresinski.

VOTE: Motion carried by a 4-0 roll call vote. Aye: Babcock, Callighan, Neeley, Teresinski. Nay: None. Chair Neeley declared the motion passed.

D. PUBLIC PARTICIPATION

John Smith spoke on behalf of Just Make it Happen, a 501c3 organization, and asked for a grant to assist with the continuation of music education and special events in the DeKalb area.

E. CONSIDERATION OF THE PROPOSED FY2025 BUDGET

City Manager Nicklas recognized Human Resources Director Michelle Anderson, Financial Services Director Susan Hauman, and Senior Accountant Meagan Challand for their assistance with creating the FY2025 budget document.

City Manager Nicklas then began his overview of the FY2025 budget document based on the information provided in the agenda packet, starting with the Transmittal Letter.

City Manager Nicklas stated that he, Mayor Barnes, and Alderman Perkins met with the library’s Executive Director, Emily Faulkner, and two DeKalb Public Library Board members on November 13, 2024, to discuss the libraries recent levy request. After lengthy discussion, the library agreed to trim approximately $476,000 from the levy.

Mayor Barnes thanked Alderman Perkins for attending the meeting. He added that overall objective of the meeting, to hold taxpayers harmless, was reached.

Alderman Verbic asked if it was conveyed to the library what reasonable and responsible levy requests are so that the City doesn’t have to repeat the conversation.

Mayor Barnes replied that he hopes next year’s discussions between the City and the library will be more proactive.

Ms. Neeley Mayor Barnes, Alderman Perkins, and City Manager Nicklas for initiating the conversation with the library and achieving a positive result.

City Manager Nicklas continued the overview. He stated that the budget sets aside $4.5 million from the General Fund for street maintenance, which is a major increase from previous years.

City Manager Nicklas continued the overview, which included the Water Operations Fund and the Fund Balance Summary.

There was brief discussion between Mayor Barnes and City Manager Nicklas regarding the increase of sales and use tax.

City Manager Nicklas continued with an overview of the Community Development narrative and special revenue funds. He also briefly spoke of the proposed S. Fourth Street TIF (TIF 4).

Alderman Perkins asked about the increased wages in the Human Resources Department. City Manager Nicklas explained that the department added an additional person to assist with day to operations. He noted that the department is fully staffed now with trained individuals that work on recruiting, interviewing, filing and keeping track of workers compensation claims, and a variety of other duties, most of which were mostly being done by Human Resources Director Anderson.

City Manager Nicklas finished his overview of Community Development and moved on to Capital Project Funds.

Mayor Barnes asked if the City was closing the gap on purchasing much needed working vehicles for its various department.

City Manager Nicklas replied, “not even close.”

City Manager Nicklas continued, providing brief overviews of the Water Operations Fund, the Airport Fund, the Refuse and Recycling Fund. He also provided an overview of Internal Service Funds, which include the Workers Compensation & Liability Insurance Fund. He noted that the nationwide average of insurance premiums has increased by approximately 10%.

City Manager Nicklas moved on, providing brief overviews of the Health Insurance Fund and Fiduciary Funds, and the DeKalb Public Library Fund. He also explained that approval of the Fulltime Non-Bargaining Unit Pay Plan is also included with the budget document for approval.

Mayor Barnes complimented City Manager Nicklas for providing great narratives for each department, noting how helpful it is to know how the City operates.

Alderman Verbic echoed Mayor Barnes’ comments.

Mr. Teresinski asked about the property tax levy.

City Manager Nicklas stated the Council discussed and passed the first reading of the levy at their November 12, 2024, meeting. Second reading will take place on November 25, 2024.

Mayor Barnes noted that the levy will put approximately $100 back into the pockets of DeKalb residents.

Mr. Teresinski expressed his concern regarding the continuing police and fire pension crisis and the City’s obligation. He noted his recommendation to pay down some of the debt using the City’s General Fund reserves.

City Manager Nicklas disagreed.

Discussion ensued.

Alderman Walker stated the City’s obligation is to the taxpayers.

Alderman Verbic wondered how the pension debt could be reduced while still looking out for the taxpayers.

Alderman Larson stated that while she realizes the City’s obligation to the pension debt, she’s concerned about the condition of some of the City’s municipal vehicles.

Discussion ensued.

Alderman Zasada stated the City has been on a course to reduce tax rates for some time and feels it should continue to move in that direction.

Mayor Barnes stated he understands Mr. Teresinki’s concerns, but disagrees, adding that the City can’t tax its way out of the debt.

Brief discussion ensued between Mayor Barnes and Mr. Teresinski.

Mr. Teresinski stated he hopes there’s more conversation in the future about reducing the City’s pension debt obligation and he’d like to be a part of it and suggested the formation of a subcommittee with a couple of Council and Finance Advisory Committee members, as well as Director of Financial Services Hauman, to research the topic and look at finding an alternative.

City Manager Nicklas expressed his frustration with Mr. Teresinski’s recommendation of a subcommittee. He stated the City needs to focus on managing growth. He noted

Mayor Barnes stated that the FY2025 Budget will be reviewed by the Council on November 25, 2024, and December 9, 2024.

Mr. Teresiski stated he is retiring, and this will be his last meeting as an Finance Advisory Committee member.

Ms. Neeley thanked Mr. Teresinski for his service to the City and the Finance Advisory Committee, as did Mayor Barnes.

F. ADJOURNMENT

City Council

MOTION: Alderman Verbic moved to adjourn the meeting; seconded by Alderman Zasada.

VOTE: Motion carried by a 7-1 voice vote. Aye: Zasada, Larson, Smith, Perkins, Verbic, Walker, Barnes. Nay: None. Absent: Powell. Mayor Barnes declared the motion passed.

Finance Advisory Committee

MOTION: Mr. Teresinski moved to adjourn the meeting; seconded by Mr. Callighan.

VOTE: Motion carried by a 4-0 roll call vote. Aye: Babcock, Callighan, Neeley, Teresinski. Nay: None. Ms. Neeley declared the motion passed.

The meeting adjourned at 7:24 p.m.

https://www.cityofdekalb.com/DocumentCenter/View/18455/2-111824-Special-Jnt-CC-FAC-Minutes