More FEMA flood buyouts possible, city to see Class 3 fire insurance rating

The former Garden Dragon restaurant - Smugglers before that - should be on the ground within 30 days, Engineer Jim Brown told Harrisburg City Council during Thursday's meeting.

The bids are in and are under budget. The restaurant was under 3 feet of water during the flood of 2008 and shortly after that the city began the application process with Illinois Emergency Management Agency for a buyout of the property. No permanent structure will be allowed built at that location again.

While the city has gotten its feet wet working through the IEMA procedure, there is an opportunity for another buyout in the West Harrisburg Drainage Area. Brown said IEMA has money left in the program and if the amount is under $5 million the buyout of 40 homes and six businesses damaged by the 2008 flood is possible. If the amount is over $5 million the scope of the project could be reduced.

Insurance Rating

Fire Chief John Gunning said the Insurance Service Organization - ISO - has rated the city's insurance at Class 3, with Class 8 being the worst rating. ISO based the rating on water supply, fire department emergency response - taking into account geographic area and response time - and 911 service. A Class 3 means businesses will enjoy a reduced insurance cost. If the department reaches a Class 2 - which is only 6 1/2 point away - homeowners would also see a reduced insurance cost.

Gunning said the fire department is working to received the Class 2 rating with increased training underway and a higher volunteer firefighter attendance rate. Gunning said adding a service company - ambulance service to replenish firefighters - is another step that can be taken.

Audit concern

During the public comments portion of the meeting former City Treasurer Charles Will asked about an issue in the city audit reflecting $5,050,000 net income not reflected in the city's income statements.

He said the general government funds and business activity funds were collectively showing a net loss for the fiscal year 2013/2014 of $333,000. He said the fund balances carried forward from the end of the previous year were not the same as the beginning fund balanced for the next year beginning April 30, 2014, and the difference was $607,432.

"And so my question is what is the nature of those dollars and why weren't they included in the income statements for those funds for the fiscal year. The effect of it is is that instead of those statements showing a loss of $333,000 there would have actually been gain of $272,000," Will said.

He said there was a similar situation the previous fiscal year, and noted the actual amount of income not reflected in income statements for that year was $4,442,000

"So collectively over for two years there is a little over $5,050,000 net income that was not reflected in the income statements for the city. So I wanted to find out what that is," Will said.

Auditor Carlos Tanner said Will was correct in noting the items and that he had reported the issues to council.

"The large adjustment was whenever the tornado happened in that previous fiscal year toward the end going into the new year, we had noted there were estimates made for damages that the city would incur, that the city had made those estimates," Tanner said.

There was an estimate of damage the city would have to repair in excess of $4,446,000. But donations were received, grant funding and other help. The result was the accrued expenditure for losses was overstated. Tanner said the inconsistencies had been made public in audit reports and he had informed then-Mayor Ron Crank.

"Those adjustments were made during those years that did distort the financials somewhat. They have been adjusted," Tanner said.

The money that had been ear-marked for city infrastructure repair was not spend, Tanner said.

"It was accrued estimates primarily. The majority of it was damages from the tornado that did not turn out to be as high as anticipated, not actual funds spent," Tanner said.

Subdivision

City Attorney Todd Bittle said in platting the Harrisburg Industrial Subdivision between the state Route 13 bypass and Small Street at the north end of Harrisburg there is a need on the west side to dedicate an alley as a street.

Commissioner John McPeek suggested it become Ingram Street in honor of longtime Harrisburg High School cross country coach and building trades teacher Chuck Ingram.

During the meeting:

Commissioner Bart Schiff became emotional as he announced Thursday would likely be his final meeting. He is not running for re-election and the next meeting he will probably be turkey hunting instead.

"It's been my pleasure to serve on the council. We were just getting over the flood when I came on and then the tornado really affected me and community," Schiff said.

Commissioner Ron Fearheiley announced the budget for 2015-2016 will be on display for public viewing at city hall the next 10 days. He said the budget is balanced.

"Some department heads may be aggravated," Fearheiley said.

McPeek reminded council the spring clean up is April 6 through April 17 with the Dumpster area on Veterans Drive open 7:30 a.m. to 2:30 p.m. Saturday, April 11.

Mayor Dale Fowler said the Harris-Pruett Building has been remodeled and that a contract must be signed at city hall before renters will be given keys.

Fowler said plans are for the city and Hardin County Work Camp to revive Operation Pride that has been absent for eight years. In April inmates will clean about 500 bags of litter along highways per day that will be stacked in the area of Buddy Pool Motors and Bulldog Systems will collect it. Aluminum can proceeds will be donated to the Christian Community Compassion Center.

Fowler said the Ohio River Scenic Byway and Hardin County Work Camp has installed three bike racks in the city, two along the Tunnel Hill Bike Trail and one at the Shawnee Community Center.

Following a closed session council voted to advertise for sale the Industrial Subdivision Lot No. 7 and the Cummins Subdivision Lot No. 1.