Members of the Gillespie City Council on Monday night took significant steps toward establishing a second Tax Increment Financing district, the objective of which will primarily be to spur new housing development in the city. Additionally, the council approved a new levy for 2021 property taxes to be collected in 2022, approved lake fee hikes, and authorized the city attorney to prepare an ordinance to raise local water rates.

On a motion by Ald. Wendy Rolando, seconded by Ald. Bob Fritz, the council voted unanimously to place on file for 10 days the TIF district plan and feasibility study and to send copies of those documents to all affected tax districts. The 10-day review period is expected to start Dec. 28, presuming Keith Moran of Moran Economic Development is able to deliver a revised district map on Monday, Dec. 27, which council committee meetings are scheduled.

The original map outlined an area on the city’s northwest side, encompassing substantial areas of vacant lots owned by either the city or the local school district. TIF districts work by capturing increases in property taxes resulting from assessment increases associated with property improvements. Essentially, the revenue the city, school district or any other taxing body receives from properties within the district is frozen at their current levels with future increases going into a Tax Increment Financing Fund which can be used to fund infrastructure improvements and other improvements within the TIF district.

Upon the recommendation of Ald. Landon Pettit, however, Moran plans to produce a revised map that will include a substantial area on the city’s south side. Pettit said he would like to see the TIF district include Big Brick Park, taking note that such inclusion would make the park eligible for TIF funds to make improvements. If the objective of the district is to attract new families to Gillespie, he said, then being able to offer improved park facilities will play a role in attracting and retaining young families.

“If we’re going to do another TIF, I really think that part of town would benefit,” Pettit said.

A feasibility study synopsis presented by Moran Monday night indicated that the area included on the original map met all criteria for TIF district inclusion. The proposed district contains a large number of vacant lots and/or lots owned by local taxing bodies, Moran said. “A lot of this property is tax-exempt,” Moran said, “or they are undeveloped, which means they have little potential for growth in tax revenue.”

“The developed portion of the area contains conditions that qualify it as a Conservation Area,” according to the feasibility synopsis. A total of 86 percent of structures are 35 years old or older. All of the developed parcels exhibit inadequate utilities in some form, with 73 percent exhibiting obsolescence in some form. A total of 68 percent of the parcels and 47 percent of the structures are deteriorating. Perhaps most significantly, property values have grown at a lower rate than in the balance of the city for at least three of the last five years.

Likewise, in the undeveloped portion of the proposed district area, property values are stagnant or declining. A total of 68 percent of undeveloped parcels are located adjacent to parcels with deteriorating site improvements. More than half the undeveloped parcels are affected by obsolete platting, and there is a diversity of ownership which would make it difficult to assemble a tract of properties for redevelopment.

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“This is largely a residential-focused TIF,” Moran said. “Pretty significantly, the area qualifies for TIF.”

Ald. Rolando told Moran that the area Ald. Pettit asked to be included would also qualify for TIF designation because of the same factors applicable to the original area.

Placing the feasibility study and TIF plan on file for inspection by the public and affected taxing bodies is the first significant step toward formally creating a new TIF district. Moran presented a tentative timeline for meeting legal requirements culminating in the formal creation of the new TIF district when the council meets in regular session on April 11.

The new TIF district will join a previously created TIF district created more than a decade ago to create funding to redevelop the downtown commercial area. The new district, if approved, will utilize the former interurban railroad right-of-way to make it contiguous with the existing TIF.

In a number of related actions, the council approved a resolution declaring the city’s intent to reimburse itself for “certain project costs.” Moran said the resolution, while not a requirement, will allow the city to reimburse itself for costs associated with creating the TIF district from TIF funds once the district starts to generate revenue. The council committed last month to paying Moran’s firm $23,900 for work associated with shepherding the council through the TIF creation process.

Council members also voted unanimously to accept Moran’s completed feasibility study and approved a resolution to establish an interested parties registry and rules. The interested parties resolution, Moran said, creates a registry for taxing body officials and members of the public who want to examine documents related to creating the TIF district. Moran said citizens would be authorized to review such documents under provisions of the state’s Freedom of Information Act but the resolution further formalizes transparency and public access.

The next major action on the TIF project is expected when the council meets Monday, Jan. 10, at which time it will review the TIF redevelopment plan and set a public hearing date for March 14. Moran Economic Development will convene a meeting in late January with the Joint Review Board to examine the TIF plan and ordinances approved by the council in connection with the TIF creation process. The Department of Economic Development and Opportunity will have final authority to approve the district based on recommendations from the Joint Review Board. The Joint Review Board’s findings are due Feb. 28, about two weeks before the public hearing.

TAX LEVY

With minimal discussion, the council unanimously approved a $375,371 levy for property taxes to be collected in 2022. The new levy represents an increase of about $18,000 over last year’s levy of $357,352.

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Broken down by fund, the ordinance levies $61,565 for corporate purposes, compared with $53,639 last year. A total of $26,506 is levied for police protection, compared with $25,247 last year; $35,912 for streets and bridges, compared with $34,206 a year ago; $10,259 for Emergency Services and Disaster Administration (ESDA), compared with $9,772 last year; $59,854 for liability insurance, compared with $57,009 last year; $15,390 for parks, compared with $14,659 a year ago; $3,421 for the municipal band, compared with $3,258 last year; $107,740 for Social Security, compared with $102,619 a year ago; and $54,724 for the public library, compared with $52,123 last year.

The actual tax rate, which is applied to the total equalized assessed valuation, is determined by the County Clerk. Gillespie and other taxing bodies in Macoupin County are subject to the Property Tax Extension Limitation Law which limits taxing bodies to property tax revenue increases that amount to no more than five percent or the Consumer Price Index. The Consumer Price Index, which measures the rate of inflation, is set at 1.4 percent for the 2021 tax year.

If the levy requested by the city exceeds the amount to which the municipality is entitled, the County Clerk is required to reduce the levy to the legal amount. The Clerk cannot, however, increase the levy if the city fails to levy the maximum to which it is entitled.

Property tax revenues account for a fraction of the city’s expenditures. This year’s appropriation authorizes the maximum expenditures the city anticipates for the fiscal year, for example, totals $7.2 million.

Action on the tax levy was preceded by a brief tax hearing but no members of the public attended the hearing to ask questions or offer comments.

WARD REALIGNMENT

Council members voted unanimously to direct the city attorney to draft an ordinance to realign the boundaries of the city’s four wards to reflect the results of the most recent census. Mayor John Hicks told city aldermen he had been contacted by County Clerk Pete Duncan, who advised the existing wards were not adequately equalized in terms of population. Duncan has asked Macoupin municipalities to finalize adjustments to ward boundaries prior to the end of the year so the Elections Office can mail revised voter registration cards in January.

Ward 1 with 870 residents and Ward 4 with 872 residents were larger than Wards 2 and 3 by 150 to 170 people.

To correct the imbalance, the new ward map will move the northern edges of Wards 2 and 3 by one block from Spruce Street to Chestnut Street.

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The adjustment will leave Ward 1 with 756 residents, Ward 2 with 816, Ward 3 with 774 and Ward 4 with 823.

The council will formally vote to adopt the new boundaries during its regular meeting on Jan. 10.

LAKE FEE INCREASES

Acting upon Ald. Frank Barrett’s recommendation, the council approved increases in lake lot lease fees, camping fees and golf cart permits.

Barrett said the increases are needed to generate additional revenue to pay for extra dumpsters and porta-potties, road improvements, personnel costs, and future upgrades to campgrounds and playgrounds.

Under the fee structure approved Monday night, lake lot increases for full-time residents will increase from $900 per year to $1,200 per year, plus $400 for each additional lot. Barrett said that recognizing a number of residents are on fixed incomes, the city is willing to collect $900 in April when lake lot leases are due and accept the remaining $300 the following month for this year only.

The cost for leasing a picnic lot will increase from $350 to $400 per year for undeveloped lots, and from $650 to $700 per year for upgraded lots.

Leaseholders who are residents of the City of Gillespie are entitled to a $50 discount.

Golf cart permit fees will double from $25 to $50 for persons who do not have a city sticker.

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Fees for the campground dump station are set at $5.

Campground fees will increase by $1 next season.

“A one-dollar increase doesn’t sound like much but when we have a full campground, it’s $80 to $100,” Barrett noted.

POLICE RADIOS

On a motion by Ald. Donna Rauzi, who participated in the meeting by phone, the council approved the expenditure of up to $27,000 to equip police officers and patrol cars with a digital radio system.

Police Chief Jared DePoppe said the existing analog radios are more than 15 years old and have a limited range.

“With our expanded area, it’s important to have good reception for officer safety,” he said.

Global Technical Systems, Greeville, will be the vendor supplying the new radios and radio system.

In a related matter, the council met with DePoppe for 20 minutes in executive session to discuss personnel but took no action on an agenda item calling for hiring a new police officer.

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BUSINESS CARD EXPENDITURE

After several minutes of debate, the council reluctantly agreed to pay a $50 invoice from Elite Print Co., Gillespie, for 1,000 business cards ordered by Water Plant Supervisor Dave Pickett. Ald. Pettit, who also participated by phone, moved to pay the expense, noting that Pickett planned to give the cards to vendors who call upon the water treatment plant.

“I can’t see not paying it,” Pettit said.

But Mayor Hicks objected to the expenditure, arguing that Pickett should have approached the council for permission before ordering business cards. He expressed concerns that if Pickett’s cards get into the hands of residents, persons with water billing questions or complaints will call the water plant instead of city hall. Had the council been approached, he said, they might have recommended one card order with names and phone numbers for all three Maintenance Department supervisors.

If a city alderman wanted business cards, Hicks said, they would be responsible for that expense out of their own pocket. Moreover, he said business cards could have been produced in-house with a computer and printer. “If anybody wants cards,” he said, “come to me and I’ll give you the card stock.”

City Treasurer Dan Fisher pointed out that paying for business cards for one supervisor could set a precedent for other employees.

“If we do this for Dave, theoretically we’d have to do for any supervisor or any employee,” Fisher said. “Fifty bucks isn’t going to break us, but it’s the principle of it.”

Ultimately, the council voted to pay to invoice with Ald. Rick Fulton voting “no.”

Early in the meeting, the council heard a concern from Andy Hirstein of the 200 block of East Chestnut, who complained that his water bill jumped by 11,000 gallons for one month. For the period from Sept. 1 to Oct. 1, Hirstein said he was billed for 16,000 gallons of usage, compared with 5,000 gallons the month before and the month after.

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He insisted he did not have a leak, either in the house or underground.

Mayor Hicks and Ald. Pettit both defended the accuracy of the meter reading, saying that if it was a matter of misreading the meter on Oct. 1, the starting number would have been incongruent for the November billing. Hicks told Hirstein he was welcome to review the raw data from the meter readers, plus the transcriptions to the billing system. Both Hicks and Pettit said Hirstein had to have had a leak—possibly a malfunctioning toilet—to account for the discrepancy.

“You can have a piece of equipment that is leaking and not notice it,” Fisher said. He suggested putting dye in the toilet tank to see if the dye makes its way into the bowl overnight.

Hirstein was advised that he would have to pay the bill but the city agreed to waive late fees as is customary for disputed bills.

WATER RATE INCREASE

The council authorized City Attorney Dan O’Brien to draft an ordinance to be acted upon next month to increase water rates for residential customers by about 2.5 percent. City Treasurer Dan Fisher said the council voted to raise rates for satellite customers but the contract with the satellites specifies such increases must be matched with an equal increase of Gillespie users.

OTHER ACTION

In other action, the council:

• Approved Christmas bonuses of $100 for all city employees. For the first time, the council made no distinction between bonuses for full-time and part-time employees. “What’s the difference?” Ald. Pettit asked. “They’re all employees.”
• Agreed to waive water bills for the Community Unit 7 Fire District facility, now located in East Gillespie. Ald. Pettit said other communities within the district waive water bills for satellite Fire District stations. “Even though they’re located in East Gillespie, their primary service area is the Gillespie community,” Pettit said.;
• Directed the city attorney to draft a resolution for action next month to authorize payment of a facade improvement grant to Rick Verticchio, attorney. The amount of the grant will be determined by the City Treasurer based on the amount for which Verticchio is eligible to receive from the TIF fund.
• Accepted bids to complete work on a Maintenance Garage addition. S & S Concrete will pour a concrete floor for approximately $2,000 and Griffith Plumbing and Heating, Carlinville, will complete plumbing work for slightly more than $10,000.
• Gave the Mayor power to act on negotiating a price with Glass Cutters, Carlinville, to replace windows in the front office at City Hall. Ald. Fritz had secured pricing to replace the windows with standard glass for $9,686.08 but Mayor Hicks said he wanted to look into pricing for tinted glass.

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