District 300 $595,000 payback to City of Du Quoin has a chance
Du Quoin Mayor Guy Alongi is withdrawing his request for $125,000 to Du Quoin Community Unit District 300 to help with off-season pool repairs.
Instead, he wants the entire $585,000 owed the city through the inter-governmental agreement that followed voter approval of the half-cent sales tax to help fund the local share of school bonds. That agreement says that District 300 will rebate the $585,000 to the city to cover its infrastructure costs when the school was built. It would likely come in the form of a long term payback.
In his Monday night remarks to the council, Mayor Alongi said:
"I need to give the City Council an update about a meeting we had on October 6 with the school district. The individuals present at the meeting included City Attorney Aaron Atkins, consultant Chuck Novak, Attorney Rhett Barke, (Dist. 300) business manager Cori Robbins, Superintendent Gary Kelly and the school district attorney Jerry Smith and myself.
"We met last Tuesday at 10 a.m. in Jerry Smith's office. The meeting was friendly but pointed. During our discussion Rhett Barke and I gave the school district a proposal to take to the school board, and hopefully we will hear a positive outcome that will settle this dispute very quickly. In the spirit of collaboration the funds withheld at the last city council meeting from the half cent sales tax monthly distribution will be released with the city council's consent. I will ask, City Attorney, Aaron Atkins to distribute the funds to District 300 following tonight's meeting. And, I do hope that the release is viewed as a good faith action, and that it results in a new intergovernmental agreement which serves District 300, the City and all of the people of Du Quoin.
"Effective immediately, I am withdrawing my request from the School District for $125,000 that was to be used for renovation of the city swimming pool that is no longer an issue, so that those making decisions will not be confused as to my request.
"It was always the intent the money's would come from the half cent sales tax that is reserved for and can only be used for school buildings and repayment to the city of Du Quoin, nothing else. Three months after becoming Mayor I was made aware of a signed agreement that states when the half cent tax was put in place the school district would pay the City of Du Quoin $585,000 during the 20 year payments to the bonding issue. If I would have known of this agreement, my request would have been worded much differently. Now I have my eye on something bigger, the repayment of the $585,000 due to the city from the school district.
"I do want everyone to understand that we still remain focused on the upgrade and renovation of the City Swimming Pool. Now, we will take $125,000 out of the $585,000, and we will dedicate it to the pool renovation.
"Tonight we release ($42,000) in sales tax funds to District 300, and we look forward to a new collaboration between the City and District 300-a collaboration that will serve all the people of Du Quoin.
Other Business
Monday's was a relatively short meeting of the city council with commissioners hinting at moving things along so they could watch the Cardinals and Cubs game.
The meeting began with a proclamation celebrating the 125th anniversary of the Daughters of the American Revolution (See Page 1).
The council passed a motion accepting the Hidden Lakes road system into the city following a cooperative road improvement program tendered by Judge James Campanella to settle a long-standing dispute among landowners and the developer.
The roads have received one coat of bituminous millings and another coat of oil mand chip which brings the road system up to code so the city will begin putting it on a maintenance rotation with other roadways and alleys in the city.
Mayor Alongi extended his deep appreciation to water department employees for the repair of two major leaks in the city in recent days.
The leak on South Line Street had to be repaired under pressure and cost the city the loss of an estimated 350,000 gallons of water.
A similar leak last week on the west side cost an estimated loss of 400,000-plus gallons. All told, between the loss of water, the pricey stainless steel sleeves to repair the lines and manpower Alongi estimates each leak cost the city $5,000.
It did reveal the need to locate as many water shutoff valves as possible. Many have been paved over and are no longer easily found. Some lines have no shutoffs and commissioner Dale Spencer said the water department purchased a machine years ago that will let the water department install new valves while the lines are under pressure. It will take time to remedy the problem.
Cautious Optimism
On City Finances
City Clerk Andrew Croessman presented an update to the council on city finances. He and consultant Chuck Novak have worked hard to reconcile all of the city's account balances. All of that work has now been accomplished.
He said with three-fourths of the year gone he is forecasting revenue of between $8.4 million on the low side and $8.8 million on the high side.
He said the city will not see peaks in sales tax revenue from periods like Du Quoin State Fair week until year-end and holiday shopping tax dollars won't be paid to the city until early next year.
He said expenses continue to be higher than one year ago and all departments are finding savings where they can in the last quarter.
Mayor Alongi said he has reached agreement with a Du Quoin commercial water and sewer user to pay a fairer share of its sewer usage resulting in a new revenue stream of $2,400 a month.
He and Croessman said the state continues to withhold motor fuel tax and video gaming payments to the cities across Illinois, which for Du Quoin amounts to about $93,000.
The Illinois Municipal League is working on legislation to get those parked monies to the cities as soon as possible.
As a footnote to payments, the Illinois Department of Corrections boot camp currently owes the City of Du Quoin $11,000 for water and sewer service that has not been paid since the budget stalemate.
One lump sum payment from the state to the city could warrant parking that money for safe keeping instead of flowing it through the city's general fund.
A critical eye on all accounts is uncovering small pockets of money that are helping the city's fiscal picture with two and a half months left in the year.
Croessman said "at first I was skeptical about revenues" but added that the picture is improving moderately. Mayor Alongi thanked him for the overview.