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 Treasurer's report for May
Chuck Conzo, city treasurer, delivered his report for the month
ending May 31.
Conzo has been offering some comparative spreadsheets showing
current period revenues versus previous years. This month he
provided information on replacement tax revenues and state income
tax.
State income tax paid to Lincoln is based on the dollars paid
into the state by the city's employed residents through their
payroll deductions.
Replacement tax has replaced personal property tax on local
businesses. Below is the official definition of replacement tax.
Replacement taxes
are revenues collected by the state of Illinois and paid to local
governments to replace money that was lost by local governments when
their powers to impose personal property taxes on corporations,
partnerships, and other business entities were taken away.
These taxes
resulted when the new Illinois Constitution directed the legislature
to abolish business personal property taxes and replace the revenue
lost by local government units and school districts. In 1979, a law
was enacted to provide for statewide taxes to replace the monies
lost to local governments.
(Definition from the Illinois Department of Revenue website, http://www.revenue.state.il.us/
LocalGovernment/Overview/
HowDisbursed/replacement.htm.)
State income tax receipts for the
city of Lincoln since 2006:
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2006 -- $1,259,233.35
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2007 -- $1,191,001.61
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2008 -- $1,453,184.62
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2009 -- $1,249,100.94
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2010 -- $1,201,644.91
For the current calendar year, Jan. 1 through May 31, the
liability to the city from the state for income tax totals
$536,492.14. Conzo advised the council that as of June 20, none of
this liability has been paid to the city.
He commented on this, saying the state was nearing the end of
their fiscal year, and payments are dwindling.
He also noted that in the same time frame of 2010, the total
would have come to $543,633.85, which means income tax revenues are
still on the decline and have been since they reached their peak in
2008.
Replacement tax receipts for the city
of Lincoln since 2006:
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2006 -- $308,071.88
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2007 -- $364,344.72
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2008 -- $358,912.51
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2009 -- $302,790.08
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2010 -- $326,476.69
Conzo explained that replacement tax pays only eight times per
year: in January, March, April, May, July, August, October and
December. For the current year, the total for four payments came to
$155,844.35. In the same time period last year, the total came to
$140,097.51, indicating this revenue source is coming in slightly
higher than last year.
Conzo also reported that at the end of May, the general fund
balance came in at $181,088.21, and he noted that at the same time
last year, the balance was in the red by $203,717.39. He commented
that this was no reason to be overly optimistic, though, because
total receipts from the state for the past month were actually a
little less than they have been in previous months, as payments are
slowing down once again.
During Conzo's report, the only comment came from Mayor Keith
Snyder, who commented on the tax increase imposed on Illinois
residents.
The increase, when proposed, was supposed to help the state meet
its obligations and get caught up on reimbursements to various
entities.
Snyder commented: "It's a good thing they passed that income tax
increase; it really made a big difference, didn't it."
City debates procedure for purchasing backhoe
At the Tuesday night workshop session, Denise Martinek, city
clerk, opened bids for a new backhoe for the sewerage department.
The only bid received came in from Martin Tri-State Equipment at
$89,900 for a John Deere model. Bids were placed on three criteria:
an outright purchase, purchase with trade and lease with trade.
Monday evening the council opted to go with the
purchase-with-trade bid. However, based on a meeting between council
members Buzz Busby and Marty Neitzel and sewerage treatment manager
Bob Tackett, they proposed making a change in the backhoe that would
be traded off.
Neitzel and Tackett explained that the old backhoe belonging to
the sewer department is actually in better condition than a backhoe
owned and being used by the street and alley department at the city
landfill.
Martin Tri-State had proposed allowing $23,000 in trade-in value
for the sewer department backhoe, and when asked to consider the
other one, offered only $11,200.
Busby and Neitzel supported making a motion to trade away the
worst of the two backhoes, even though it had not been mentioned in
the bid packets sent out.
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City attorney Bill Bates said he was hesitant to support their
decision because competing bidders, even though there were none now,
might have submitted a bid had they known there was going to be an
additional option.
Tackett said that early on in the bid process, he had spoken with
a dealership representing Volvo and Case who said they were not
currently bidding because John Deere is low-balling all their bids
and they cannot compete with them.
After some debate Bates said the city could basically forgo the
bid process and opt to make a cash purchase with a two-thirds
majority vote.
With that decided, the motion was made to make an outright
purchase from Martin Tri-State with a trade-in of the backhoe owned
by the street and alley department. The motion passed unanimously.
Main Street addresses council
In keeping with Snyder's request that the members of his "Gang of
Five" -- representing the chamber of commerce, tourism, Main Street
and economic development, in addition to the city -- offer periodic
reports of their activity to the city, Wanda Lee Rohlfs made a
presentation Monday evening for Main Street Lincoln.
Rohlfs handed out specific information about a change in state
governance for the Main Street program on the whole.
When Gov. Pat Quinn took office, moving from the lieutenant
governor position, a new lieutenant governor did not immediately
replace him. The Main Street program in Illinois had been under the
jurisdiction of the lieutenant governor's office, but at that time
was moved to become a part of the Illinois Department of Commerce
and Economic Opportunity.
Rohlfs said the program has been a DCEO line item since then, but
it is now going to be made official through
House Bill 3414. She explained that the bill has been passed and
now awaits Quinn's signature of approval, which the Main Street
organization is confident will happen.
Once the bill is signed, and effective July 1, Main Street will
be under two umbrellas: the Illinois Historic Preservation Agency
for the history component and DCEO for the economic development
component.
Rohlfs said there will more than likely be some subtle changes in
what is expected of the Main Street program.
The purpose of the program on the whole has always been historic
preservation and revitalization of downtown areas, which included
economic development.
Rohlfs said she expects DECO to want more on the economic
development side, but they also have free services that can assist
in the process.
Main Street programs in Illinois are also going to do
self-assessments with DCEO. Rohlfs said Main Street Lincoln board
members will have their annual board retreat in July and will
prepare for the self-assessment, which she expects will happen
sometime in August.
Rohlfs also took the opportunity to thank the city street
department for their help in getting the flower baskets hung around
the downtown square.
Letter to fair board approved
Fire Chief Mark Miller submitted for council approval a letter to
the Logan County Fair board asking for $1,005 for services the fire
department will provide on three nights of this year's fair. The
dollar amount requested is based on the actual cost of having a fire
engine and firefighters on-site at the fair during the tractor pulls
and demolition derby.
The council approved the letter unanimously.
Other news
Police Chief Ken Greenslate said his department participated in
the Illinois Department of Transportation Click It or Ticket program
May 15-30 and issued 91 tickets for seat belt violations.
Miller reported that firefighter Ashley Williams has competed his
initial probationary period. Miller said Williams has done very well
in this period of time and is going to be an excellent permanent
addition to the department.
Williams was initially sworn in as a probation firefighter. Bates
said that in the near future, he will need to be sworn in as a
permanent member of the department.
Snyder reminded the council that Conzo and Busby share a birth
date and will be celebrating their respective milestones on June 21.
When asked if they would like to comment on it, Busby responded
by saying, "I'm looking forward to the next one."
[By NILA SMITH]
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