Farmer City approves new budget

Council also approves TIF grant to solve property issue

Gordon Woods / gwoods@theclintonjournal.com
Posted 4/17/24

CLINTON — The Farmer City Council approved an amendment for the city’s FY 2024 budget as well as the budget itself on Monday.

This item is available in full to subscribers.

Please log in to continue

Log in

Farmer City approves new budget

Council also approves TIF grant to solve property issue

Posted

CLINTON — The Farmer City Council approved an amendment for the city’s FY 2024 budget as well as the budget itself on Monday.

“There haven’t been a lot of changes that needed to be made,” city manager Sue McLaughlin said.

She reported that the few changes required were all from the general fund. 

“Our Social Security and Medicare costs were a little higher than expected,” McLaughlin reported.  “And, the sewer fund had some unexpected expenses.”

She said the city was still within its appropriations limit. 

“This is to make sure the bottom line of each area is within the budget,” she said.  “We’re still in good shape, obviously.”

The council approved the budget running from May 1, 2024-April 30, 2025.

“I’m not crazy about going into deficit budget,” McLaughlin said.  “It’s very minimal; it’s only $20,000.”

She said much of the additional expense involved the city’s garage project and a new vehicle for the police department. 

“So, there are some costs here we just couldn’t avoid,” McLaughlin said.

The city’s fund balance still would remain in the 70-80 percentile range, she added.

“So, we’re way ahead of the game.”

She also reported the city was having a positive month so far balancing revenue and expenditures.

McLaughlin also updated the council on an ongoing property issue.

“This is the land and house we’ve invested quite lot in attorney’s fees forcing the original owner to demolish it,” she said. 

McLaughlin said the house had posed a city health hazard. 

“Then, it had a fire, and the roof has fallen in,” McLaughlin said.

She said the new owner of the property, Tony Gum, had agreed to demolish the house.  She said he has so far complied with all the city’s requests concerning the property.

“He is requesting TIF (Tax Increment Financing) assistance, and because of the addition of the building, I’m recommending an emergency percentage,” McLaughlin said.

Normally that percentage would be 20-30 percent, but she said an emergency percentage of up to 50 percent could be authorized, “because he’s agreeing to do it right away.”  She added the issue with the property had been continuing for about the past year.

The low quote to demolish the house was $8,700, of which the city would cover half.

A court order already was in place to demolish the house, said city attorney Jeff Hanley.

“This isn’t Mr. Gum’s problem,” Hanley said.  “He didn’t cause the problem.”

But, Hanley said the city was making an attempt to expedite the demolition.

The council approved the TIF grant.

The council also approved a resolution to appoint members to the city’s newly-formed zoning commission.  The council moved in March to begin the process to assume zoning authority from the county over the corporate limits of Farmer City.