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Galena City Council adopts 2020-21 budget

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GALENA–The COVID-19 pandemic is leaving a mark on the city of Galena’s budget.

The city council approved the $9,494,200 fiscal year 2020-21 operating budget at the Monday, April 27 virtual meeting. The budget includes a $682,995 deficit–$441,960 from the general fund–with revenues projected at $8,811,205.

Council members Chris Allendorf, Marc McCoy, Jerry Kieffer, Pam Bernstein and Jerry Westemeier voted in favor, while Robert Hahn was opposed.

In preparing the budget, revised from what was originally presented pre-pandemic, city staff projected revenues at 30 percent of the original anticipated amount. Expenses were slashed by 29 percent.

The city’s overall fund balances as of April 30, 2021 are projected at $4,446,022, down from $5,129,017 estimated on April 30 of this year.

The approved budget includes a hiring freeze. Funding to the Galena Kiwanis Club for fireworks and Northwest Illinois Economic Development was reduced to $2,500 each. In the past, the city has budgeted $3,500 for fireworks and last year NWILED received $3,000 from the city. The Galena Area Chamber of Commerce will receive $2,500 for the Halloween parade.

Earlier in the meeting, the council took up two funding agreements separately, one of the Galena ARC and the other for the Galena-Jo Daviess County Historical Society and Museum.

In the past the city has given the ARC $15,000 for youth sports and the museum $5,000 as a reimbursement for utilities on the city-owned museum property on Bench Street.

Taking the budget challenges into account, the council decreased the historical society reimbursement to $3,500.

That wasn’t enough for Westemeier.

“I think this year we have to do what we have to do,” he said, suggesting $2,500 was appropriate.

Bernstein suggested all donations to non-profits be reduced by 30 percent, the same amount city staff slashed from the city’s revenue projects for the year.

For the ARC, the council considered $10,000 or $7,500 in funding.

Again, Westemeier pushed for $2,500.

Renner reminded the council the ARC charges for all its programs. He said as the city tightens its belt, others should as well.

Westemeier asked what will happen when the city has to furlough employees.

“What are we going to tell them?” he asked.

McCoy reminded the council the city does receive a service from the ARC. The ARC provides youth sports opportunities.

“This is a contract for services,” said McCoy.

The ARC will receive $10,000 in funding. Westemeier was opposed.

Mayor Terry Renner said the council will reexamine the budget every two months going forward to monitor expenses.

 

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Other business

In other business, the council:

•approved the intent award for the east side utility improvement project to Louie’s Trenching for $1,384,717. The project is expected to begin in July.

•modified and renewed the destination marketing agreement with Jo Daviess County and the Galena/Jo Daviess Office of Tourism which takes effect July 1.

The city will retain 8 percent of the hotel-motel tax collections.

The city can use the funds for tourism-related expenses such as staffing and overhead for tax collection, administration, and enforcement for tourism-related events such as Country Fair, Oktoberfest and the Halloween.

Council member Chris Allendorf made a motion for the city to retain only 4 percent, noting that the city should leave marketing up to the professionals. That motion died for lack of a second.

•approved monthly service fees and charges for the waterworks system. The rate increase scheduled for May 1 has been postponed until November. The base rate will increase to $6.32 and the charge per 1,000 gallons will increase to $5.46.

•abated taxes for the Palace Campground. When the campground was annexed in 2016, the abatement of taxes was part of the agreement. The total abated to date is $6,370.35. The agreement is for $40,000 or 20 years, whichever comes first.

•approved trolley service licenses, horse-drawn carriage license and tour guide business licenses.

•approved an agreement with Brycer, LLC for the compliance engine fire inspection, testing and code compliance reporting agreement.

•approved employee appointments for the period from May 12, 2020 through May 10, 2021.

•approved utility write-offs for $462.61.

•approved the purchase and installation of new flow meters for wells six and seven for $7,900.

•approved the renewal of the taxicab license for Eco-Cab, LLC.

 

Liquor commission

Meeting as the liquor commission:

•approved a renewal of liquor licenses beginning May 1.

•approved a corporation manager liquor license by Galena Associates, Inc., DeSoto House Hotel, 230 S. Main St., for Michael P. Steinhoff.

•approved a corporation manager liquor license for Jesse Sertle, Walmart.

•approved a corporation liquor license by Galena Tajin Mexican Restaurant and Cantina and a corporation manager license for Noel Herrera Pulido, 124 N. Commerce St.

•approved a corporation liquor license for Cannova’s Galena, 247 N. Main St.