Finance Committee Minutes
VILLAGE OF NORTH AURORA
FINANCE COMMITTEE MEETING MINUTES
MARCH 9, 2015
CALL TO ORDER
Trustee Curtis called the meeting to order.
In attendance: Trustee Laura Curtis, Trustee Chris Faber, Trustee Mike Lowery.
Staff in attendance: Finance Director Bill Hannah, Village Administrator Steve Bosco, Police Chief Dave Summer, Public Works Superintendent Mike Glock, Water Superintendent Paul Young.
AUDIENCE COMMENTS - None
APPROVAL OF MINUTES
1. Approval of the Finance Committee Minutes dated January 12, 2015
Motion for approval made by Trustee Lowery and seconded by Trustee Faber. All in favor. Motion approved.
1. Discussion of 2nd Budget Amendment for FY 2014-15
Finance Director Bill Hannah noted that building permit revenues for the current fiscal year are approximately $800,000 vs. a budget of $175,000. The Village approved a budget amendment last fall in the amount of $275,000 to accelerate the parkway tree replacement program.
The projection for the next budget: revenues exceeding expenditures of about $500,000. Staff provided a couple of recommendations to the committee on where to allocate the funds. The first suggestion was an increased contribution of $250,000 to the Police Pension Fund. The pension fund is well funded at just above average at 65%. There is an unfunded liability of about 6.5 million dollars. The other suggestion was an additional transfer of up to $300,000 to the Capital Projects Fund. There are numerous capital projects that would be allocated to be used for future capital projects as determined by the Village Board. Curtis asked what other options the Village has in terms of allocating the funds. Hannah said the Village can leave the money in reserves. In addition, the Village has transferred money to the Vehicle and Equipment Fund and the Insurance Fund in the past.
Hannah said this would go before the Board at the next Village Board Meeting Monday night.
2. Discussion of FY 2015-16 Budget Development
Finance Director Bill Hannah reported on the following:
-Sales Tax Revenue - 7-1/2% higher than last year at this time.
-Income Tax Revenue – $1.6 million for the current year and projecting a 4% increase next year.
-Building Permit Revenue - $800,000 for the current fiscal year and projecting $200,000 for next year.
-Used Tax Revenue – continues to do well. Projecting an 11% increase over last year and a 4-1/2% increase next year to $350,000.
-Telecommunications Revenue - $75,000 for next fiscal year
-Video Gaming Revenues - $45,000 for current year and $55,000 for next year.
-Cable Franchise Fees – will increase 4-1/2% to $272,000.
-Property Taxes – will increase 2% next year.
The Village is looking at the following:
-Allocation of funds for continuation of strategic planning processes
-2% pay adjustment for non-union employees.
-Market and redevelopment studies for various sites within the village.
-Feasibility of conducting a partial census in the Village.
-Additional officer for the police department. This would alleviate overtime cost, increase total police officers from 20 to 21 and provide better coverage for the village.
-Additional Public Works position and an additional Water Department position.
Advanced Bond Refunding that was done earlier in the year will be a savings of $225,000. This will be $225,000 less that the Village has to transfer to the police station debt service fund.
The Village is looking at $75,000 in revenues over expenditures for next year.
MFT Funds - $1.3 million in reserves at the end of the year. Will use half of that to pay for the Village’s cost of the Randall Road resurfacing project.
Loan Fund - $340,000 in the revolving loan fund.
TIF Fund – $480,000. Major plan is the reconstruction of Smoketree Lane’s second phase. That project will cost $825,000 and will be funded out of the TIF Fund. After that is completed, the Village will have $1.1 million remaining in the TIF Fund.
Sanitary Sewer Collection - $1.3 million in the fund to use.
Capital Projects Fund – revenues to remain the same.
Road Program – includes Banbury, Hawthorne, Butterfield, Grace, John, Roberts and State Streets. Looking to add Dee Street. Cost to complete the roads in Randall Crossing will also be added to the bid Estimated cost is $1.4 million.
Engineering for the dam - $500,000 for the IGA.
Trustee Faber asked if money has been budgeted for GIS. Hannah said that there has been talk about this internally. Bosco said this next year the Village will formulate a plan which will be discussed with the Board. This will tell the Village what is needed as well as the cost.
Debt Service Funds – The Village will be finished with the library debt in 6 years. There are 14 years remaining on the police station debt repayment bond issuance.
The village received the rental income from the cell towers of $142,000. Connection fees from new developments totaled $700,000.
Reserves are estimated to decrease to $1.8 million in the current year because the Village finished two (2) watermain replacements in one year.
Next year the Village is looking at the west side auto mall water tower for painting and maintenance activities at a cost of $285,000.
Bosco said in terms of personnel, there is a real need for additional personnel for police, water and public works departments. Bosco noted that this would allow for some work being contracted out to be done in-house, allow for preventative maintenance to be done and provide better coverage and save on overtime.
OLD BUSINESS - None
OTHER INFORMATION - None
TRUSTEE COMMENTS - None
Motion to adjourn made by Trustee Faber and seconded by Trustee Lowery. All in favor. Motion approved.
Lori J. Murray