Pinckneyville sees need for better regulation of business district tax fund, awards $55,000

Commissioner Leonard Heisner suggested suspending awards of Business District Sales Tax other than for facade grants until the council is able to implement rules about who is eligible for funds and how often.

Chamber of Commerce President Jessica Holder suggested the council form an ad hoc committee to create the rules. The committee would include Holder, a second chamber member, two city commissioners, the economic development coordinator and an unbiased financial expert.

Heisner said he and Mayor August Kellerman would work with the chamber and economic development coordinator Carrie Gilliam on forming a committee.

The council then awarded $25,000 to Dr. Ralph Chapman for the construction of the Pinckneyville Dental Care building on Main Street. Dental services do not generate sales tax. Dr. Chapman said that he does pay a two-percent use tax on items he purchases such as toothbrushes, of which the city should receive a portion. City Treasurer Rick Reese said the city does receive use tax, but he does not know how much is generated by specific businesses. The use tax would be paid to the city where the specific item was purchased.

Mayor Kellerman said the city will do the curb and gutter work around the new dental office.

The council also awarded $25,000 to Ting Ni to be used as part of a $200,000 facelift for the Dairy Queen. The facade grant prohibits national chains from receiving the maximum $10,000 facade grant.

The council agreed that the facade grant regulations are adequate. The council approved a facade grant for half of a $8,000 to $10,000 project at Save-A-Lot.

In other business, the council:

• directed City Attorney Roger Seibert to continue negotiating with the owner of the Higman Building (former TUMS building). Higman had asked the council to abate $60,000 in interest on the building so that he could sell it. Commissioner Heisner said he and Seibert had worked with Higman two years ago to create a payment schedule that included both principal and interest. The last payment made on the property was July 3, 2013. The interest on the loan was five percent. Several council members said they would be willing to accept half the interest owed.

• heard from Tim Simpson that there are two trailers behind his home which are not livable. There are a number of wild animals living in them. Simpson said he does not know who owns the trailers, but would like them removed. Simpson's second issue was with a neighbor who frequently lets a Pit Bull run loose in the neighborhood. He has called the police several times, but the dog has not been caught off its leash. Simpson said the dog's owner has threatened him and he tried to file a complaint with the State's Attorney's office, but could not do so because no police reports are available. Commissioner Kevin Hicks said he will make sure a report is completed. The council debated placing a trap in Simpson's yard to catch the Pit Bull, but decided to ask the County's Animal Control Officer to handle the matter.

• approved the purchase of three computers for the utility department at a cost of $4,316. The city had to upgrade their hardware in order to get the latest SCADA software update. Commissioner David Stone said he did not know the cost of the software update. That will be discussed at a future meeting.

• tabled the discussion on a contract with Utility Services Group for automated water and gas metering services throughout the city. The cost would be $247,000 per year for the first four years and about $60,000 per year for the next 11 years of the 15-year contract. Commissioner Stone said he had budgeted to phase in new metering equipment for the past several years. According to tests run by the city's utility department on two of 20 meters they replaced last year, the meters were found to be 23 to 25 percent slower than they should be. Utility Services Group tested the other 18 meters and found they ran an average of 33 percent slower than they should. Stone said he would like some more time to consider the numbers. It is a big gamble that the city would make up the cost of the new equipment in increased revenue from new meters. The city would also save on labor costs. Stone said city employees spend a lot of time reading meters.

• passed the prevailing wage ordinance.

• granted permission for the Perry County Agricultural Society to collect funds for fireworks on Saturday, June 14 from 8 a.m. to 1 p.m. at locations around the square and four-way stop, pending receipt of the group's insurance papers. The council also voted to give the Perry County Fair $2,500 for advertising. The free fireworks show will be held at approximately 9 p.m. on Wednesday, June 18.

• agreed to give the American Thresherman Association $2,500 from the hotel/motel tax fund for advertising.

• approved the annual donation of $5,000 to the Pinckneyville-Du Quoin Airport.

• heard from Mayor August Kellerman that there will be a public hearing on the zoning ordinance and map produced by the Zoning Commission at 7 p.m. on Monday, July 14, immediately before the regular meeting. Seibert said that he noticed one change the council must make before adopting the ordinance. When establishing the Zoning Administrator position, the Mayor should also appoint a seven-member Zoning Board of Appeals. That eliminates the need for the City Council to serve as the final authority in the appeals process and follows the state statute. The color-coded map is available at City Hall.