City adopts deficit budget, hears advice from former Mayor

The Pinckneyville City Council passed a resolution adopting the budget for the year ending April 30, 2015 following a public hearing immediately prior to the regular meeting Monday evening.

The budget predicts a deficit of $580,020 for the city operating budget, which includes the general fund, public affairs, fire, police, civil defense, park, OSLAD, IMRF and economic development funds. There is a balance on hand of $168,155 and predicted revenue of $3,918,600, making $4,086,755 available for use. Expenses of $$4,666,775 are anticipated.

The enterprise funds (water, sewer, pool and gas) are projected to have a surplus of $382,455.

Former Mayor Joe Holder cautioned the city that while the deficit budget doesn't look good, his main concern is the balance in unrestricted funds.

City Treasurer Rick Reese reported at the April 14 meeting that the balance in unrestricted funds as of March 31 was $885,811 which was down from $1.385 million at the end of March 2013.

"When the unrestricted balance reaches $500,000 you're broke," Holder said. "It takes that much just to run the city. Consider it working capital."

Holder suggested the city keep a close eye on sales tax revenue, keep people happy with road maintenance and mowing projects and move slowly on creating a zoning ordinance. He pointed out that Perry County handles zoning in the city limits now and creating a zoning office would only mean more employees to pay.

He punctuated his remarks by holding up papers from his last term in office with headlines such as "Pinckneyville lays off six."

Shirley Welsch questioned how the city could move forward with the soccer park when the budget predicts a $580,000 deficit. She pointed out that the project could potentially tie up $800,000 of the city's money.

The city has set aside $400,000 in TIF funds for their share of the project, but will have to fund the entire project then receive reimbursement for half the cost up to $400,000 from a grant.

Commissioner Leonard Heisner said that he and Commissioner David Stone will have to sit down before work begins on the soccer park to determine exactly where the city will get the funds to pay for the work.

Heisner also explained that while the budget includes line items for every possible expense, the city might not follow through on all potential projects or have to make potential repairs.

Welsch pointed out the financial difficulties of Perry County and the local school districts as proof that the city should be more conservative.

"It's a moving target," Heisner said of the budget.

In other business, the council:

• granted permission for Pinckneyville Elementary School Dist. 50 to excavate near the northwest corner of their building. The floor of the classroom there has dropped. The excavation will ascertain if there is a problem with the building's foundation. The sidewalks on the north side of the building may have to be removed for the excavation to take place.

• passed a resolution authorizing Commissioner David Stone to apply for a permit from IDOT to construct and maintain an eight-inch water main under Route 154 which will serve the new Pinckneyville Community Hospital.

• placed on file for public inspection a $50,000 engineering agreement with HMG Engineers for design ($30,000) and construction ($20,000) engineering on the city lighting project. Phase I of the project includes new lighting and a clock on the square and the streets surrounding it. Total cost of the project is $350,800, including the engineering contract. Business district funds will be used to pay for the upgrades.

• placed on file for public inspection the documentation for the 2014 motor fuel tax program. The city has allotted $131,000 in motor fuel tax funds for road work this year.

• passed ordinances abating the direct taxes for the annual principle and interest payments on approximately $1.2 million in general obligation bonds. The 2011A and 2011B bonds were refinanced in 2012. The payments on the bonds are made from the water revenue accounts.

• discussed whether or not to add mowing at the public library to one of the city's existing mowing contracts. City Attorney Roger Seibert said that the library is a separate public district from the city. The city extends the tax levy passed by the Library Board each year, but all library maintenance is handled by the library board.

• passed a resolution to apply for a permit on behalf of the Illinois Rural Heritage Museum for their sixth annual tractor drive on Saturday, June 7. The tractors plan to travel from Goldeneye Road to White Walnut to Route 154 to East Randolph to East Street to East Parker across Route 13/127 to Wilson Street to Virginia Court to Murphy Road and south on Fairgrounds Road then return to Goldeneye by the same route. The event begins at 1:30 p.m. The tractor drive is followed by a banquet at 6 p.m.

• granted permission for the Coulterville VFW to collect funds at locations around the square on May 17 from 8 a.m. to 10:30 a.m. Commissioner Leonard Heisner questioned allowing an out-of-town group to collect in Pinckneyville, but voted in favor after being told the city had no exclusionary policy.

• granted permission for the Perry County Humane Society to collect funds at locations around the square and four-way stop from 8 a.m. to 4 p.m. on Oct. 18.