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STATE OF THE CITY
ADDRESS
CITY OF MOLINE, ILLINOIS
JANUARY 18, 2010
Despite the economic downturn
experienced during 2009, Moline remains focused on
growing our economy and providing premier services to
its citizens.
The city was presented with many financial challenges
during 2009 in an economy that has forced governments,
businesses and residents alike to make significant
sacrifices.
We began in October 2008 to formulate the 2009 budget.
We projected a $972,000 deficit and passed a balanced
2009 budget in late December. By January, the economy
had worsened substantially and by February the deficit
had grown to over $3.2 million primarily based on
obligations to fund existing employee pension funds.
While these increases leveled off to $2.7 million in
June of 2009, pension costs now total 38% of payroll
compared to 17% in 2000.
In addition to the 77% increased obligation to employee
pension funds Moline incurred $1.8 million dollars in
lost revenue as well:
Loss of Rental Car Tax $106,000
Loss of Corporate Replacement Tax $450,000
Loss of Income Tax $300,000
Loss of Sales Tax $438,000
To place this in perspective, from 2006 thru 2009 the
city experienced unfunded state mandates and
uncontrollable costs of $4 million. In comparison, the
deficit totaled over $4 million in 2010 alone.
To manage the decline in revenue the city eliminated 23
full time positions, bringing the total reduction in
force to 43 since 2002. Once again we suspended the
needed $1.2 million replacement of the Central Fire
Station heating and air conditioning system. We
installed a new Voice over IP phone system saving
$106,000 annually and once again deferred vehicle
replacement for an additional $336,000 savings. Other
efforts included reducing seasonal employees by 20% and
IT staff by 50%. The Library will use $94,000 of their
reserves and has closed the library on Sundays. The Park
& Recreation Department also used $48,000 of their
reserves and eliminated one administrative position as
well. Employees will take mandatory furlough days in
2010 and negotiated wage increases are being postponed
until July of 2011.
Many other reductions were made, but despite these
efforts a 1/4% increase in local option sales tax and
1/2 % increase in the Prepared Food & Liquor tax were
passed by the Moline City Council to maintain critical
services such as police and fire protection while
maintaining minimum levels of other important city
services. Through these efforts, the city was able to
maintain its property tax rate of $1.99 / $100 of
assessed valuation for the third straight year.
The city also experienced the loss of 194 years of
institutional knowledge in 2009. Retirements included
the Library Director, Parks Director, Fire Chief, Police
Chief, Construction Manager, IT Manager and Water
Pollution Control Manager. Two of these positions were
not replaced.
But all is not lost!! There IS good news!
The good news is that while 2009 was primarily focused
on controlling costs to maintain a balanced budget;
several positive initiatives were accomplished as well.
Moline continues to move forward!
A new Community Health Care clinic was constructed at
5th Ave & 11th Street providing medical care for many
Moline residents and providing a new west gateway into
downtown. The project also eliminated a city eyesore,
the Clark gas station that stood abandoned for over 10
years. The old Clark station at 43rd Street & 4th Ave
was also cleared for future development and the
remaining abandoned Clark station at 34th Street and
Avenue of the Cities is currently before the EPA for
approval of effective mitigation measures by the
property owner.
After many years of controversy the nurses’ dormitory on
6th street is in the 3rd and final phase of asbestos
remediation. The remediation plan has been accepted by
the Illinois EPA and demolition is scheduled for late
February – Early March 2010. Once cleared the property
will be developed by a private developer for
mixed-density residential use.
The city adopted a burn ban to help stay in compliance
with new EPA standards, increasing air quality and the
quality of life in Moline. The city utilized a bailer to
enhance the pickup of an additional 371 tons of leaves,
up 20% from 2008. Leaves were bailed and made available
to farmers for livestock bedding, or in bulk to
incorporate on farm fields. Over 73% percent of leaves
collected were kept out of local area landfills saving
over $60,000 in land fill charges. Now that’s recycling!
To maintain our commitment to reduce our carbon
footprint and become a greener community, Moline will
purchase nine Ford Fusion Hybrid cars through a federal
energy grant reducing emissions by 315 metric tons,
saving the city 25,750 gallons of fuel and $62,000 over
the 10 year life of the vehicles. Additionally, lighting
at the fuel island will be converted to LED (Light
Emitting Diodes) lighting further reducing energy
consumption and cost.
Economic Development and Infrastructure efforts
continued despite a weak economy
In the spring of 2009, the state adopted a Capital Plan
that included funding for Western Illinois University’s’
Quad Cities Campus on River Drive and 34th Street.
Later, on December 16th Governor Quinn announced funding
of $62 million for construction to begin in March of
2010 on buildings one & two.
While many other projects scheduled to start in 2009
were delayed, in part to the weakened economy, River
Tech Blvd, between 25th & 34th Streets, the Flex Tech
Building at 25th Street & River Drive, KONE Tower, and
the Enterprise Lofts at 19th street & River Drive are
still moving forward. Many of these projects will break
ground this spring.
The city completed construction of Avenue of the Cities,
31st to 34th streets; upgraded 43rd street, north of
Avenue of the Cities from a seal coat road to concrete
with curb & storm sewer; completed the northbound lanes
of 70th Street from 34th Avenue to John Deere Road; and
completed phase two of improvements to Browning Park.
Additionally, $3.1 million was invested in water,
sanitary and storm sewer infrastructure.
Passenger Rail service to Moline and the Quad City
region made significant progress over the past year.
• Moline was selected as the location for the Quad
Cities Passenger Rail Station.
• In February Congressman Hare announced $475,000 in
funding for QC area track improvements.
• Over $8 billion in federal “stimulus” funds and $550
million in state capital funds were appropriated for
intercity and high speed passenger rail.
• If funded in the first quarter of 2010 the Department
of Transportation estimates the Chicago-Quad Cities
route will be operational by 2014.
Some major infrastructure improvements scheduled for
2010 include:
• Reconstruct southbound lanes of 70th street; 34th Ave
to John Deere Road. ($825,000)
• Widen the remainder of 7th street from 32nd Ave to
Wildwood Drive ($1.6 million)
• Reconstruct 5th Avenue downtown; 14th to 17th Streets
($1.9 million)
• River Tech Blvd. ($3.6 million)
• Streetscape River Dr.; 25th - 34th Streets ($870,000)
Another ongoing success story for Moline and the Quad
Cities is the Rock Island Arsenal. Over 1100 jobs were
added to the Arsenal in 2009 that includes military,
civilians and contractors, bringing the island
population to over 8,000 employees. Federal support for
the Arsenal is in excess of $19.2 million for 2010
creating needed jobs for the region.
With the use of Thompson Prison as a Federal
Penitentiary, it is estimated that the Department of
Defense will locate 400 associated jobs on the Arsenal.
Certainly 2009 was filled with accomplishments as well
as challenges. These positive accomplishments will
continue in 2010 in the form of new and retain jobs as
economic development efforts continue; and we will
celebrate these accomplishments as they occur. It is
necessary however, that Moline citizens understand the
challenges as well.
The top two challenges for the City of Moline in 2010
will be to maintain a balanced budget and to identify a
funding source for the repair and replacement of
critical infrastructure. The condition of our streets,
alleys, sidewalks and other critical infrastructure
continues to decline. Unless a sustainable capital
improvement revenue source is identified our
infrastructure will continue to fall into greater
disrepair. Failure to address this critical need will
discourage business expansion and growth in Moline. It
is incumbent upon us all to make Moline the city of
choice for business and families alike, by providing the
infrastructure and amenities desired by both sectors.
The decision will be difficult, but if we expect to
continue to attract businesses and families to Moline we
must provide the infrastructure needed to conduct
business and provide the quality of life families
expect.
As we move forward in 2010, the challenges of our
economy will continue, but so will the opportunities to
create jobs and grow Moline. We enter 2010 with
optimism, focused on the future and dedicated to our
continued growth and success. Moline is a great city
with many amenities and strengths; the greatest of which
are its people.
Thank You!
Donald P. Welvaert
Mayor
City of Moline
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