2007 by jianghongl

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									                             CITY OF LE ROY
                            ANNUAL REPORT

     SEPTEMBER 13, 2006 - SEPTEMBER 12, 2007
NARRATIVE

   The City of Le Roy has an official population of 3564.

   The following is a listing of all elected officials:
   -------------------------
   Mayor:                          Gary Koerner             2009

   Council Ward One:               John Haney               2009
   Council Ward One:               Dawn Thompson            2011

   Council Ward Two:               Dave McClelland          2009
   Council Ward Two:               Shirley Chancellor       2011

   Council Ward Three:             George Cook Jr.          2009
   Council Ward Three:             Nancy Bentley            2011

   Council Ward Four:              T. A. Whitsitt           2009
   Council Ward Four:              Dawn Hanafin             2011

   City Clerk:                     Sue Marcum               2009
   Treasurer:                      Teresa Miller            2009




                                                                   1
BUDGET & FINANCE

       The City Council approved the 2007-2008 budget in April of 2007. The total
budget for the current fiscal year is $ 3,465,000 as opposed to last year’s budget of
$ 3,225,500. This represents a 7% increase. The primary reason for the increase was an
increase in tax increment financing funds.

        State financial problems have had a significant impact on City funds over the past
five years. However, over the past few years, the revenue has been increasing again.
Part of the increase is due to the increased population from the 2000 census to the 2005
special census and part is because the state has increased its per-resident contribution.
The following shows how the revenue has changed over the past three years.

         Revenue                                        2005-06           2006-07           2007-08
---------------------------------                     -----------       ------------      ------------
Income & Replacement tax                              $ 234,000         $ 274,000         $ 323,000
Sales & Use Tax                                       $ 220,000         $ 251,000         $ 281,000

        The following information details the revenue changes since the special census
went into effect. Prior to the special census, Le Roy’s population was 3332. The new
population is 3564. This represented an increase of 232 residents. Three revenue streams
are calculated based on population. They are income tax, use tax and motor fuel tax.

   Year                             Income Tax                 Use Tax           Motor Fuel Tax
2003-2004                           $ 201,001                  $ 34,930            $ 94,778
2004-2005                           $ 232,177                  $ 34,414            $ 97,417
2005-2006                           $ 268,509                  $ 42,045            $ 99,929
2006-2007                           $ 296,576                  $ 46,183            $102,964

        The City has received one full year of receipts for each of revenue sources
calculated by population. The special census increased our population count by 232
people. This additional 232 people has generated approximately $ 29,000 in additional
revenue. The special census cost the city about $40,000. Sometime during fiscal year
2007-08, the City will have paid for the census with the increased revenue and will be
profiting for having the count conducted.

                           The City has the following outstanding debt:

         ISSUE DATE CURRENT DEBT TYPE OF DEBT                                      TYPE OF BOND
         ---------------     -------------------        ------------------         -------------------
                  7/86       This issue was paid off in fiscal 2006-2007
                  7/96       $ 342,000                  Storm Sewer              General Obligation
                  9/03       $1,865,000                 Water Plant              Alternate Revenue
         --------------------------------------------------------------------------------------------------
                  TOTAL $2,207,000
         =========================================================


                                                                                                          2
                       The following is the schedule to retire all debt:

                      Description                                       Retired
               7/86 General Obligation Bond Issue                        2007 Paid
               7/96 General Obligation Bond Issue                        2011
               9/03 Water Alternate Revenue Issue                        2018

       The most recent tax levy (December 2006) for the City reduced the rate of 55
cents per $100 of assessed valuation to 52 cents per $100 of assessed valuation.

        The following is the property tax history over the past nine years:

               Year             Assessed Valuation               Rate
               -----            --------------------             -----
               1998             $ 29,370,150                     .9753
               1999             $ 29,646,779 (+ 1%)              .9756
               2000             $ 30,170,928 (+ 2%)              .7596
               2001             $ 31,389,550 (+ 4%)              .6810
               2002             $ 33,531,307 (+ 7%)              .6493
               2003             $ 35,593,399 (+ 6%)              .59865
               2004             $ 35,559,920 (+ 0%)              .61928
               2005             $ 36,862,116 (+ 4%)              .52402
               2006             $ 38,078,705 (+ 3%)              .51946

        In 1998, the City represented 12% of your annual property tax bill. In 2007, the
City represents only 6% of your annual property tax bill.

       The rates for the taxing bodies that have jurisdiction within Le Roy are as follows:

                Taxing Body                                Rate                % of total
       ---------------------------------       -----------------------------   ------------
       McLean County                                    .919270                   11%
       Le Roy Fire Protection District                  .390020                     5%
       Parkland Junior College                          .461470                     6%
       Le Roy Park District                             .439350                     5%
       Empire Township                                  .177720                     2%
       Empire Township Road                             .199520                     2%
       CUSD 2 Le Roy                                   5.357220                   63%
       City of Le Roy                                   .519470                     6%
       -----------------------------------              ----------             ------------
       TOTALS                                          8.464040                  100%

       During the budget process for the 2007-08 fiscal year, the following rates were
increased:




                                                                                              3
Description                           Rate 2006-07           Rate 2007-08
Building Permit Fees                  See the attached table

Street Cut (A-3 Surface)              $ 200.00             $ 250.00
Street Cut (Hot Mix over Aggregate)   $ 200.00             $ 500.00
Street Cut (Hot Mix over Brick)       $ 350.00             $ 500.00
Street Cut (Brick Pavement)           $ 400.00             $ 750.00




                                                                            4
PERSONNEL

       The following changes took place over the past year in reference to personnel:

       HIRED                  STARTING DATE                 POSITION
       --------               -----------------------       -------------
       Dustin Wiesemann             02/18/2007              Patrol Officer
       David Jenkins                09/04/2007              Code Compliance Officer

        Job descriptions and pay scales have been established for all newly hired
positions.

        The City’s health insurance plan had increased in cost to the point that changes
were necessary to keep the benefit levels the same and at the same time control the
overall cost for the plan. The insurance committee evaluated several options and made a
recommendation to the council to make some changes.

        As part of this change, two years ago, the City Council adopted a deductible buy-
back program that allows the city to pay premiums for a $500 deductible plan and keep
the employees deductible at $250. In an ongoing effort to continue to control the cost of
health care, the City continued with the higher deductible in order to reduce premium
costs to both the employee and the City. The City continued to cover the difference in
deductible over the original amount of $250.

       The first full year of this plan cost the City $ 1787.45 in deductible
reimbursements. The estimated savings to the City was approximately $ 11,712.55 in
year one. The second year of the plan cost the City $ 2,500.00 in deductible
reimbursements. The estimated savings to the City was approximately $ 11,000.00 in
year two. Through the first two years, the city has saved over $20,000 by adopting the
deductible reimbursement program.

        City Administrator Jeff Clawson is in year three of a four year contract. The
existing contract will expire in April 2009.




                                                                                           5
ADMINISTRATION

       Committee chairs and membership was assigned by the Mayor for the six
standing committees. They are as follows:

Budget & Finance              McClelland     Haney          Hanafin        Cook

Community & Economic          Chancellor     Thompson       McClelland     Hanafin
Development

Personnel                     Whitsitt       Thompson       McClelland     Cook

Public Safety                 Thompson       Haney          Chancellor     Bentley

Public Works                  Haney          Whitsitt       Bentley        Hanafin

Building & Zoning             Cook           Chancellor     Bentley        Whitsitt

       The office of Mayor Pro-Tem was voted on by the council and Dave McClelland
was the unanimous choice.

        City employees and the council conducted their seventh annual planning retreat.
The purpose of the annual retreat, conducted each January is to talk about issues facing
the city. This process helps with short and long term planning as well as the budget that
begins around the same time of year.

        The annual Illinois Municipal League Conference was attended by John Haney,
Steve Reynolds, Katie Miller, and Jeff Clawson. The City was invited to provide a power
point presentation in reference to the shared services concept. The presentation was
viewed by many attendees interested in pursuing the shared services concept either from
the perspective of offering their services to neighboring communities or looking to the
neighboring communities to provide services to them.




                                                                                            6
The City adopted a new motto in 2007:

                    “Creating our past by investing in our future”


The City adopted a new logo in 2007:




                                                                     7
STREETS- ALLEYS- SIDEWALKS

       Motor Fuel Tax funds were utilized to resurface city streets totaling
approximately $78,000. This includes 6 – 7 blocks of new asphalt. Since 1999, the City
has spent $690,000 and asphalted approximately 138 blocks.

       The 2007 program includes the following:

       The 500-600-700 Blocks of East Center Street
       The Mill Street Parking area at Le Roy High School
       The two blocks of south Park Street (between Center and Rt 150)

        An evaluation of all signage within the city began in 2003. New safety related
signs were installed around all parks and schools. A new stop and yield sign ordinance
was adopted by the council in 2007. An implementation plan is now in progress.
Finally, street name signs will be upgraded. The new street signs will be color coded to
identify city streets, private drives and streets in unincorporated areas.

        Moe-Joe’s from Normal is nearing completion of its third year of a three year
contract to handle all mowing services for the City. They have done a very good job
again this year. There were no problems or complaints. The total paid through August
(for the current year) was $ 8,186.92. This contract will need to be bid again sometime
in the winter of 2007-08.

        The street referred to as Dixie Court was changed to Persimmon Drive. The street
referred to as Maple Street (between Chestnut & East) was changed to Sunset.

       The City has hired Farnsworth Group to evaluate drainage in the Crumbaugh
subdivision. A new plan will be set and implemented in the fall of 2007 to continue to
improve drainage throughout the subdivision.

       The widening of Center Street between Mill and Lynn was completed as well as
the addition of a new diagonal concrete parking area. The concrete parking area cost the
City $56,000 and added over 40 new spaces.

       The City contracted with David Brackett to build a small retaining wall between
the west parking lot and the new sidewalk at the high school. The project was completed
in August, 2007 at a cost of $7,500.

       During the winter of 2006-2007, a severe ice storm damaged over 100 trees in
LeRoy. The clean up was time consuming and expensive. Since this was a storm,
FEMA came in and assisted with the cost of the clean up. FEMA reimbursed the city for
over $18,000 in expenses. Since the expenses had already been absorbed into the budget,
the council authorized the purchase of a new pick up and some other miscellaneous
equipment for the public works department.



                                                                                           8
CITY PARKS

       Donated materials continue to be collected to help build the first baseball field at
Brickyard Fields. Kahuna Builders and the Central Illinois Regional Airport have both
donated chain link fencing for the fields.

       The City is working to create a bike trail system through Le Roy. Plans will
continue to be enhanced as new areas are targeted. All new subdivision growth includes
discussions in reference to adding dedicated bike path areas.

        Bruce and Jan Owens donated $50,000 for the purpose of building a playground
area in Falcon Ridge Park. Volunteers were organized by Steve Dean and a new park
was built. In addition to the cash donation and the volunteer labor, city crews provided
resources to ensure that the park was completed. The playground was dedicated in honor
of Bob and Rosie Owens during the summer of 2007.




                                                                                          9
CITY PROPERTY

        The City has taken bids to have the Old Permabilt facility located in the 400 block
of N Hemlock razed in the fall of 2007. The building was in a state of disrepair. The
cost to have the building removed was approximately $70,000.

        The City acquired a 20+ acre tract of land located between Bicentennial Drive and
I-74. The cost of the land was $8,500 per acre ($180,000). The City acquired the
property for an industrial park. Currently the land is be farmed with the one house being
rented to a small family. This property was annexed into the City in the summer of 2007.

        The City acquired lot 20 in phase 1 of the Falcon Ridge Subdivision. This lot was
needed to extend city sewer laterals from Falcon Ridge to Fox Run as well as a future site
for the bike path. The City agreed to provide in-kind services (water main expansion) to
Marsh Development in exchange for the lot.

        The owners of the building located at 118 N Chestnut Street signed the building
over to the city during 2007. This building was in need of demolition and the existing
owners where not in a position to pay for the razing. The City accepted title and razed
the building. Including restoration to the adjoining building, the cost to the city was
approximately $25,000.




                                                                                          10
BUILDING & ZONING

       Over the past three years, the City has entered into agreements with El Paso,
Kappa, Clinton and Heyworth to provide building inspection services of our code
compliance officer (CCO). This year the City has entered into an agreement with
Lexington. They lost their part time inspector and are now interested in the assistance of
our code compliance officer. All communities are billed for the use of the CCO at a rate
of $25 per hour.

       The following statistics reflect building permits for the past three year period:

                     September 2006 through August 2007
       Description                            Total                    Amount
       New housing starts                =     18     =              $ 2,384,961
       New buildings                     =     21     =              $    81,036
       House renovation                  =     21     =              $ 103,275
       Miscellaneous Projects            =     36     =              $    90,279

       Commercial Starts          =                   3      =       $ 3,905,370
       Commercial renovations     =                   2      =       $    31,755
       GRAND TOTAL (ALL PROJECTS)                            =       $ 6,596,676

                            September 2005 through August 2006
       Description                             Total           Amount
       New housing starts                =      11    =      $ 1,616,276
       New buildings                     =      26    =      $ 165,675
       House renovation                  =      11    =      $ 194,345
       Miscellaneous Projects            =      38    =      $ 119,983

       Commercial Starts          =                   3      =       $ 197,735
       Commercial renovations     =                   7      =       $ 325,050
       GRAND TOTAL (ALL PROJECTS)                    96      =       $ 2,619,064

                            September 2004 through August 2005
       Description                             Total           Amount
       New housing starts                =       18   =      $ 2,074,380
       New buildings                     =       25   =      $ 219,352
       House renovation                  =       26   =      $ 222,495
       Miscellaneous Projects            =       41   =      $ 263,181
       GRAND TOTAL (ALL PROJECTS)               110   =      $ 2,779,408

       Sean Spencer is in his third year as the City’s plumbing inspector.




                                                                                           11
The current Zoning Board of Appeals includes:

Larry Bruning        Chair                       Glen Reinhart        Secretary
Wes Rafferty                                     Jim Spratt
Dale Marshall                                    Les Whitmer
Don Jenkins

      A previous member of the Zoning Board of Appeals, Charles Kumler passed
away during the past year. He was replaced on the board by Don Jenkins.

       Several text amendments were evaluated by the CCO, the Building and Zoning
Committee, and the Zoning Board of Appeals. All changes were made during the winter
of 2006. Changes included, removing the specific requirements for pole buildings and
changing the out-building maximum from 1,000 square feet to 750 square feet.




                                                                                  12
POLICE

       A new vehicle was added to the fleet during the spring of 2007. The fully
equipped vehicle is estimated to cost approximately $30,000. The 1999 Ford Crown
Victoria (Unit 16) was taken out of patrol service and passed on to the Chief.

         The 2002 Dodge Intrepid will be either taken out of service as an active squad or
it will be reduced to the back up vehicle to be used when one of the primary units are
being serviced/repaired.

        A new vehicle was ordered from Hutch’s Motor Company in May, 2007. This
vehicle will be added to the fleet with either the 2001 or 2002 taken out of service. The
cost of the vehicle fully equipped is estimated to cost $36,000.

                                  Police Fleet of Vehicles

       2008 Ford Crown Victoria       (Black & White)                Unit 13
       2006 Ford Crown Victoria       (Black & White)                Unit 16
       2002 Dodge Intrepid            (Black & White)                Unit 14
       2001 Ford Crown Victoria       (Black & White)                Unit 12
       1999 Ford Crown Victoria       (White)                        Chief
       1996 Talon                     (Blue)                         Unit 15

        In addition, Dustin Weisemann was added to the staff and began PTI in February,
2007. He graduated at the end of May and was advanced to field training. Dustin
completed his field training in August and now works on his own. The police department
is currently at full staff.

       Officer Mike Bennett was recognized for responding to a man down at the local
Super 8 motel. The individual was in apparent cardiac arrest and Officer Bennett
performed CPR and saved the individuals life.

                                   POLICE ACTIVITY

                                      8/06 – 07/07             08/05 – 07/06
                                      ---------------        ------------------
       Total Calls Responded to       = 5,094                         4,500
       Criminal Reports               = 326                           277
       Reported Accidents             = 56                            40
       Criminal Arrests               = 143                           160
       Traffic Citations              = 358                           317
       DUI Arrests                    = 28                            12
       Alcohol Related Arrest         = 32                            25
       Drug Related Arrests           = 36                            50
       Warrant Arrests                = 41                            39
       Written Warnings               = 17                            36


                                                                                         13
       Ordinance Violations           = 29                          25
       Business Checks                = 1001                        537

       The program approved by the City Council authorizing our police department to
handle traffic control at the Tri-Valley School District at the end of each school day
began its third year in August 2007. This program requires one hour of officer time per
day. The City is paid $40 per hour to provide this service. The program started in
August, 2005.

        The City of Le Roy Police Department entered into an intergovernmental
agreement with the McLean County Sheriff’s Department. The purpose of this
agreement was to authorize Le Roy officers to handle emergency calls in Empire
Township. Since the county department is responsible for providing this service, the
states attorney’s office felt that the agreement would be appropriate. With the election
and the change in the Sheriff’s position, this concept is being evaluated by Sheriff Emery.

       In 2006-2007, the Le Roy Police Department purchased their second taser. No
reportable incidents have occurred since our officers began carrying a taser.

ESDA
      During the last fiscal year, the ESDA offices were relocated from the Old
Permabilt facility to the old water treatment plant building. Rodney Munster continues to
manage ESDA services.




                                                                                        14
WATER

       Kerry Gifford, Water Treatment Plant Supervisor has continued working to
improve maintenance procedures and reduce overhead costs to operate the water
treatment plant. Kerry has the treatment plant on a regular maintenance schedule.

       U.S. EPA continues to utilize the new water treatment plant as a test site for
chemical analysis. They will be evaluating various chemical scenarios to determine the
most effective way to remove ammonia from the water in the distribution system.

        City crews built a new six inch water main to serve the Fox Run subdivision.
This is a two block, one street subdivision designed to accommodate 16 new homes. The
City built the water main as part of the TIF incentive.

        The focus for 2006-2007 was to work to improve the distribution system. Several
areas have been evaluated. Kerry continues to identify problems throughout the system.
The City will continue to make dead end mains a priority. In addition, water service
lines, valves, wells and hydrants will be evaluated.

       The Council will be evaluating a new program during the winter 2007-2008 that
would allow residents to sign up to have their water service lines repaired by the City.
This program would be structured on a monthly fee basis. To qualify, the property owner
must allow a complete inspection of the service line and plumbing configuration of their
home.

        The following fees were increased as part of the budget process for the 2007-2008
fiscal year:

         Description                        2006-07                       2007-08
-----------------------------               ----------                    ----------
 Residential Tap Fee                        $ 310.00                      $ 500.00
 Commercial Tap Fee                         Materials Plus                $ 750.00 *
 Industrial Tap Fee                         Materials Plus                $1,500.00 *
 Institutional Tap Fee                      Materials Plus                $ 750.00 *

* Plus the cost of materials provided




                                                                                        15
SEWER

         The City hired Donohue and Associates from Champaign to assist with new
NPDES permit requirements. The NPDES permit is required every five years from the
Illinois Environmental Protection Agency for the City Wastewater Treatment Plant. Over
the summer of 2005, several ordinances were adopted to meet the new requirements.
Over the next 24 months, the City must implement a long term control plan (LTCP) in
reference to our combined sewer overflow (CSO). The estimate of cost to produce this
plan is in the neighborhood of $30,000 - $ 50,000. In the spring and summer of 2006, the
required storm events were captured to put together the data that IEPA will evaluate in
reference to the CSO.

        The actual cost of the LTCP was approximately $35,000. The plan has been
reviewed by IEPA and a meeting was held in late August 2007 to discuss the plan.
According to IEPA, the City of Le Roy’s sewer rates are very low. Since the plan the
City is proposing is a 20 year plan and the rates are low, IEPA feels that the City should
be able to increase the rates from an average of $10 per month to an average of $40-$50
per month to complete the LTCP in five years rather than twenty years. The City will
continue to work with IEPA to complete the LTCP per their requirements.

       The City continues to pay monthly payments toward the purchase of the vactor
truck. This truck was acquired in July of 2004 for a cost of $162,000. A lease was
entered into with Busey Bank for a rate of 3.95%. The final payment will be in July of
2008.

       Sewer laterals were extended into the Fox Run Subdivision during the summer of
2007. The laterals were connected through Falcon Ridge at the corner of Marsh Hawk
and Falcon Ridge Drive.

        The following fees were increased as part of the budget process for the 2007-2008
fiscal year:

         Description                          2006-07                       2007-08
-----------------------------                 ----------                    ----------
 Residential Connection                       $ 200.00                      $ 500.00
 Commercial Connection                        $ 300.00                      $1,000.00
 Industrial Connection                        $ 500.00                      $2,500.00




                                                                                         16
REFUSE

         The City has continued the process of closing the landfill. Last year, the
groundwater monitoring program was implemented. Once IEPA has signed off on the
program, a five year monitoring period will begin. Depending on the test results of the
program, the landfill closure could be complete in the next five to six years. IEPA has
not signed off on the monitoring program yet. The City through Patrick Engineering
continues to provide information to IEPA with the goal of getting the five year window
of testing started.

        The City implemented a $ 3.00 per month fee on all utility bills to cover the cost
of closing the landfill. This fee will be in effect from May, 2005 through April 2010 and
will generate approximately $270,000 to cover landfill closure costs. The total revenue
received from September 2005 through August 2006 (year 1) was $52,113.66. The total
revenue received from September 2006 through August 2007 (year 2) was $ 52,657.62.

        The recycle program is nearing the end of its second year in operation. The drop-
off containers were open to the public in November of 2005. The program has gone
extremely well. In year one, 2005-2006, 102 tons of materials were recycled by the
LeRoy community. In year two, 2006-2007, 146 tons of materials were recycled by the
LeRoy community. This is an increase over year one of 43%.

        The refuse pick up contract expired October 31, 2006. New bid specifications
were distributed in September 2006, for final council action in October 2006. A new
three year contract was awarded to Allied Waste Disposal (Bloomington). The new
contract took effect on November 1, 2006 and will end on October 31, 2009. New rates
increased in year one of the contract by approximately 4%.

        Residential pick up rates changed from $11.00 per month to $11.75 per month
effective November 1, 2006. The rate will change from $11.75 per month to $12.50 per
month effective November 1, 2007.




                                                                                          17
LEGAL

        The five year franchise with Mediacom expired in February 2006. Mediacom
asked for a six month extension to allow time to negotiate a new agreement. The City
authorized the six month extension. The City is pursuing the ability to tape delay
broadcast local events. Mediacom had difficulty providing the information that the City
needed to advance this process. The information has now been provided and the City is
working with a third party vendor to determine all steps and associated costs to advance
the tape delay broadcasting process.

        The City will require of Mediacom:
   1.   Improved and expanded service in Le Roy
   2.   Continued technical support as well as access to channel 13
   3.   Enhanced services including tape delay broadcasts on channel 13
   4.   Installation of all governmental facilities
   5.   All appropriate franchise fees are being paid

       The annual prevailing wage ordinance was adopted by the City Council in the
summer of 2007. This ordinance is adopted annually to authorize and require contractors
to meet McLean County prevailing wage scales.

      Sheldon Bane, Attorney for the City of Le Roy has drafted an intergovernmental
agreement that will be used by the Le Roy Park District, The Recreation Center Authority
and The City of Le Roy in reference to the recreation center. This document will outline
ownership, debt service responsibility and management rights for all parties.




                                                                                       18
COMMUNITY DEVELOPMENT

        The City continues to sponsor a local website. Kari Neibur has taken over for
Sharon Newton as the City’s webmaster. Sharon had been providing the service since
October of 2003. Kari took over in March, 2007. The website can be found at
www.leroy.org. Kari has made several improvements including a new cover page. The
police department has put together new information that Kari has installed in the website.
Improvements will continue to be made to the site to keep it current.

       The City continues to manage its own local television access channel 13. Anyone
subscribing to Cable TV through Mediacom may view the City’s local access channel
(Channel 13). Ads are being sold to local business with all not-for-profit groups being
allowed to advertise their upcoming events for free. The channel continues to be very
popular.

        The City has assisted with the funding of the newly formed Le Roy Business
Development Group. Steve Dean served as the first director. He resigned and Stacie
Friedlein has been hired by the board. This group was formed to assist local business.

RECREATION CENTER

        The City offered the citizens an opportunity to vote to build a new recreation
center that includes an indoor pool, outdoor pool, gym, elevated walking track, weight
and fitness area, concessions and activity rooms. In April 2007, the voters decided to
support this project with a .5% increase in the sales tax rate. The results of the vote were
71% yes and 29% no.

       The City and the Le Roy Park District have joined forces to build this new facility
(Le Roy Recreation Center). A new board has been created called the Recreation Center
Authority (RCA). They have been meeting since May, 2007. The board is as follows:
Theresa Bailey, President; Shirley Chancellor, Vice-President; Tom Morse, Secretary-
Treasurer; T. A. Whitsitt, member; and Justin Marcum, member.

      The bid specifications were completed in September, 2007. The contract will be
awarded in October, 2007 with the goal to complete the project by the fall of 2008.

       The project is estimated to cost $4.5 million. $3.6 million in bonds were issued
by the City/Park District to be paid over 20 years. In addition, the City has pledged
$400,000 in TIF funds. The Park District has pledged the land and $100,000 in property
taxes. A grant request was submitted to the State of Illinois OSLAD program for
$400,000. Local fundraising will generate an additional $100,000.




                                                                                          19
ECONOMIC DEVELOPMENT

       The following projects are in various stages of completion:

       Flanagan Bank opened its new facility in August, 2007. It is located in Le Roy
Plaza across from McDonalds.

       The Love’s Truck Stop/Arby’s is under construction. This project started in May,
2007 and will be open for business by Thanksgiving. The estimated cost of this project is
$6.25 million. Tax increment financing will reimburse $1.25 million in cost eligible
expenses over the life of the TIF.

        The City purchased SCBA (breathing) equipment for the Le Roy Fire Protection
District. The cost of the equipment was $57,300.

        Mike & Gail Hanafin purchased the Princess Theatre. The City provided $65,000
in TIF incentives to help with the facility acquisition and renovation.

        Jack’s Café is under construction in the Le Roy Plaza Subdivision. This is a $1.1
million project through the investment of Jack Pinjoli. He is building a full service
restaurant with banquet facilities. Tax increment financing will reimburse $257,000 in
cost eligible expenses upon completion of the project.

        A Holiday Inn Express is in the planning stages and will be under construction in
the spring of 2008. This is a $3.5 million project that will include a business center, pool
and over 60 rooms. Tax increment financing will reimburse $ 580,000 in cost eligible
expenses over the life of the TIF.

        Mike & Gail Hanafin completed the renovations to their building located at the
corner of Main and Cherry. An insurance company has leased the facility and moved in
during the winter of 2006. The TIF program was used to assist with the renovations to
this building.

        David Novitski (Lucky Aces) began renovating the building located on the
northeast corner of the intersection of Chestnut and Main. He will be opening a
restaurant/bar in the fall of 2007.

       The City continues to be a member of the Central Illinois Development
Partnership (CIDP) to assist with future economic development projects.

        The City also has continued their membership with the Illinois Tax Increment
Association (ITIA). This organization assists with the administration of legislative issues
relating to tax increment financing.

       The City paid the final full year increment payment to each business with a
redevelopment agreement that qualified. The total of these payments was over $400,000.


                                                                                          20
        The original TIF District is scheduled to end on October 31, 2007. The City has
statutory extended the property tax portion of the TIF for twelve additional years. So the
extension will take the TIF until October 31, 2019.

        In addition, Illinois Department of Revenue has authorized the extension of the
sales tax portion until October 31, 2013 (6 additional years).




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SUBDIVISION ACTIVITY

       Falcon Ridge Phase III was completed last year. This phase has 28 lots all with
City water, sewer, sidewalks and asphalt streets. There are still a few lots remaining
available for sale. The developers are looking at opening up phase IV next spring. This
phase will also have about 40 lots and will extend Falcon Ridge Drive to the east.

       The Crumbaugh Subdivision has been completed. Only a few lots are un-
developed and they are privately owned.

        The City Council has approved the final plan for the Fox Run Subdivision. This
will be a sixteen lot subdivision. Water, Sewer and the Curb and Gutter have been
completed. The developers are working on the concrete street. House building will
begin no later than the spring of 2008.




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FUTURE PROJECTS

    1. The City continues to look for grant money to assist with changes to our
       existing sewage treatment plant or construction of a new sewage treatment
       plant. The focus has been through Representative Weller’s office and the
       request is for $1,000,000 in STAG Funds for design engineering.

    2. The City for the past year has submitted proposals to attract industrial
       development and add new jobs. Most recently, the City submitted a proposal
       for a wind turbine manufacturing plant. This process will continue over the
       next twelve months. At this point, the City has not been contacted in
       reference to any of the proposals.




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