City of Lincoln set to approve $22 million 2019-20 budget
Part six: An overview of special funds

 

[April 13, 2019] 

LINCOLN 

According to the final draft of the new fiscal year budget presented to the Lincoln City Council on April 9th , the city of Lincoln will have a total budget of $22,876,721. Of that amount, $7,421,155 will be general fund expenditures. The balance of $15,455,566 is made up of special or designated funds expenditures.

The fiscal year begins on May 1st.

Property Tax

Property tax revenues are estimated at $177,605 with expenditures listed as $177,980. Expenditures of the property tax line are all payments to General Obligation Bond number eight.

2020 GO Bond

The city will be able to take out a new General Obligation Bond in December of 2019. The total bond will be $500,000. In the first year of the three-year bond, the city would expend $175,000, $50,000 of which is the previously discussed designation for street repairs/improvements.

2017 GO Bond

The balance remaining from the 2017 General Obligation Bond totals $25,518. The bulk of that balance - $24,588.68 will be used for technology and equipment. The remaining $929.32 is designated as bond expenditures.

Sewer

The expected revenues in the city Sewerage Department totals $10,274,700. This amount includes a loan total of $5,950,000, which is part of the total loan that will be needed for the city’s Long Term Control Plan sewer updates.

In the Sewer Accounting and Admin portion of the sewer budget, significant increases are showing up in office supplies and postage primarily because of the change in billing. An overall increase in salaries is due to the hiring on a new person mid-year 2018-19.

On the sewer Plant Operations and Sewer Collection System portion of the budget, the contract with Veolia Water Contract Services for the year dropped from $1,375,000 to 1,240,830.

Significant increases are found in the Capital Expenses for Building and Grounds. This figure increased from $7,500 in the 2018-19 year to $495,000 in the 2019-20 fiscal year. There are also Lift Stations and CSO/LTCP budgeted at $3,500,000. This is due to necessary expenditures related to the Long Term Control Plan sewer updates. The LTCP is mandated by the Illinois Environmental Protection Agency, so the city must make these changes and improvements in order to stay in compliance.

TIF Fund

Expended revenues from the Tax Increment Financing project total $135,015 for the new year. The total expenditures are for bond payments only and total $173,818. The gap of $42,053 will be filled with money from the general fund.

Conzo said that the amount to be collected on the TIF fund for this year was the assessed value of properties in 2018 payable in 2019. He said that under the current circumstances, he couldn’t predict what would happen in the future, but the council should anticipate that the amount collected could change substantially.

Michelle Bauer asked about the absence of any Façade Grant funding in the TIF line. Conzo said that from previous conversations, he had concluded that the council did not want façade grants paid out from TIF funds. He said his impression had been that if there were to be a façade grant it would be paid out of the general fund.

Bauer said that it had been confusing that the façade grants were often considered TIF grants. Conzo agreed and said that the grants had not actually been paid out of TIF revenues, but rather had been paid through transfers to the TIF from the general fund. He went on to say that for the coming year there is no money budgeted anywhere for façade grants.

Motor Fuel Tax

Anticipated revenues from the Motor Fuel Tax line total $727,660. Expenditures total $791,000. The gap in the amounts is filled by dollars remaining in the account from previous years. Included in this amount is $300,000 reimbursement for Fifth Street projects with a matching $300,000 in expenditures. These are pending amounts as the city works through the issues with the Fifth Street Road Project.

Hotel/Motel Tax

Projected revenues from the Hotel/Motel Tax for 2019-20 total $175,000, and expenditures total $166,773

Michelle Bauer asked that the city increase the pass-through amount to the Logan County Tourism Bureau from 85 percent to 90 percent.

The city has seen an increasing number of requests for support of local events by organizers. Bauer said that she felt those requests should be going to the LCTB, but because the money is with the city, people are coming to the council for their funding requests. With the increase in funding to the LCTB, Bauer wants many of these groups and organizations to be referred to the bureau.

The city is keeping money for maintenance of the Tropics Sign, Railsplitter, support for the Logan County Genealogical & Historical Society, Dock Dogs, and a line for Balloon Fest should it be revived this year. The portion estimated to pass through to the tourism bureau is $157,523.

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The city of Lincoln will host a Public Hearing on April 23rd at 7 p.m. in Council Chambers at City Hall. Following the hearing a special voting session will be called where that aldermen will be asked to adopt the proposed budget. Immediately following the voting session, the council will go into its regular committee of the whole meeting typically scheduled for the fourth Tuesday of the month.

[Nila Smith]