Finance Committee Minutes
VILLAGE OF NORTH AURORA
FINANCE COMMITTEE MEETING MINUTES
OCTOBER 13, 2014
CALL TO ORDER
Trustee Faber called the meeting to order.
In attendance: Trustee Mike Lowery, Trustee Chris Faber, Village Clerk Lori Murray, Village Administrator Steve Bosco, Finance Director Bill Hannah, Public Works Superintendent Mike Glock. Not in attendance: Trustee Laura Curtis.
AUDIENCE COMMENTS - None
APPROVAL OF MINUTES
1. Approval of the Finance Committee Minutes dated 07/14/2014
Motion for approval made by Trustee Lowery and seconded by Trustee Faber. All in favor. Motion approved.
1. Discussion of 2014 Tax Levy
Property taxes are 20% of the General Fund revenues. Inflation factor this year is 1-1/2%. Can capture the value of new construction. Highest new construction last year compared to last five years. Total extensions last year were $2,157,063. The inflation factor this year is 1-1/2% which would yield $32,356.00. Due to new construction added to the Village’s tax rules, if the Village were to pass a levy to capture that, it would be $30,633.00 as well which would be a total estimated extension of $2.22 million. Which is about a 2.9% increase over last year.
The actual property tax revenue remaining in the General Fund, estimated for the next fiscal year will only increase by less than 1% for fiscal year 2015/2016.
The EAV is stabilizing. Looking at a 1.5% increase next year. Had $5.9 million in new construction EAV realized last year which is the highest amount since 2008.
New Construction EAV is picking up. CPI chart shows the 3-year trend as 2.1% .
Police Pension Valuation contribution by the Village is increasing 3% to $596,000.
Staff is proposing consideration of a levy of $2,250,000 which would capture the new construction and CPI factors applicable for 2014. Will bring an estimated levy to the Village Board meeting in November and pass the levy at the first meeting in December. The Finance Committee was in favor of recommending the tax levy. There were no further questions.
2. Discussion of Payment Options for Fees and Services
The Village has two ways that customers can pay their water bills. They can use automatic debit or epay (which has a transaction fee). Visa would be an option but the village would have to absorb the transaction fees. There are credit card terminals at Village Hall. The current annual cost for the terminals is $3,000 a year on average. There are about 400 people who have taken advantage of paying their water bills on line.
In order to address customer complaints, staff is proposing activating a feature in the current finance ERP system that would allow customers to pay their water bill without any transaction fees. No additional costs would be incurred other than merchant/interchange fees per transaction.
The Committee was in favor of providing improved payment options to residents. Hannah said he could get updated fees and proposals and bring that back to the next Committee of the Whole meeting.
OLD BUSINESS - None
OTHER INFORMATION - None
TRUSTEE COMMENTS - None
Motion to adjourn made by Trustee Lowery and seconded by Trustee Faber. All in favor. Motion approved.
Lori J. Murray