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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