Operations Committee Minutes
VILLAGE OF NORTH AURORA
OPERATIONS COMMITTEE MEETING MINUTES
OCTOBER 1, 2018
CALL TO ORDER
Trustee Guethle called the meeting to order.
In attendance: Trustee Mark Guethle, Trustee Laura Curtis, Trustee Mark Carroll, Mayor Dale Berman, Village Administrator Steve Bosco, Finance Director Bill Hannah, Police Chief David Fisher, Community & Economic Development Director Mike Toth.
AUDIENCE COMMENTS - None
APPROVAL OF MINUTES
1. Approval of the Operations Committee Minutes dated August 6, 2018
Motion for approval made by Trustee Carroll and seconded by Trustee Curtis. All in favor. Motion approved.
1. Revised Investment Policy
Finance Director Bill Hannah stated that the last time there was an update to the investment policy was in 2013. The village is required by state law to have an investment policy and the village has identified and met with another government’s investment pool, Illinois Trust. Their rates are very competitive. The main change is to add them as an authorized investment vehicle. Hannah said this will be presented as a resolution at the next board meeting.
2. FY2018–19 Budget Amendment
There are two items related to the budget amendment: 1. Part-time police records specialist. The annual cost would be $18,000. 2. Salary range for the custodian position. Based on comparable analysis, the village is looking for a 6% increase in the custodial salary range.
Trustee Curtis asked how many records personnel the police department currently has. Chief Fisher said that there currently are two full-time and one part-time positions. Curtis asked what is contributing to the increased workload. Chief Fisher said that tickets are up 65%, warnings up 173%, ordinance violations up 456%, 74 DUI arrests compared to 69 arrests all of last year, 92 towed vehicles compared to 55 last year. The increase results in more paperwork, information to be entered into the records and more reports. There are also more FOIA requests and more work that needs to go to the attorney’s office. Village Administrator Steve Bosco stated that the Village has also been more proactive with resident complaints and doing directed patrols which results in increased pull overs. In the past, the previous chief and Dave Fisher approached Bosco with the opportunity to add an employee. A study was done on call volume analysis. Out of nine communities, the Village has the least amount of civilian staff with other communities having four or five staff members. Two full-time and two part-time positions are needed for the village at this time.
3. Revisions to Human Resources Manual
Two revisions: Elimination of Presidents Day as a village holiday. In lieu of eliminating that holiday, will provide employees with an extra personal day.
Second change is clarification regarding Employee Health Insurance contributions. Since joining IPBC, their plan year begins on July 1st and the Village’s benefit year begins January 1st. There would be a change in the total dollar amount of the premiums July 1st. The language in the HR Manual would affix those employee contributions to whatever the premiums were on January the first month of the employee benefit plan year.
4. 2018 Tax Levy Estimate
Hannah reviewed 11 slides regarding the tax levy.
The following summarizes the estimated calculations for this year’s potential extensions for consideration by the Village:
Last Year’s Total Property Tax Extensions: $2,388,160
Est. Increase Due to Inflation (2.1%): $ 50,151
Est. Increase Due to New Construction: $ 66,531 (14,424,625 New EAV)
Total Est. Available Extensions: $2,504,842
The 2018 taxable EAV is currently estimated to increase 7.70% to $543,073,340. The 2018 estimate is based on preliminary data from the County Clerk’s office. This number will change and likely lower slightly as final appeals and adjustments are made. The 2018 EAV numbers appear to show a strong increase in current property value of about 4.8%. The 2018 estimated EAV is based on property sales that occurred during 2015, 2016 and 2017.
The 2018 estimated EAV includes an estimated $14,424,625 in new construction EAV. This is the largest new construction value since 2008, or the largest in 10 years.
If the Village adopts a levy which when extended by the County after complying with PTELL law realizes all of the allowances provided by CPI and new construction the total increase in general property tax revenue that would be estimated to be received would be an increase of $116,682 (estimated) or about an increase of about 4.9% to $2,504,842. This is significantly higher than in prior years due to the new construction EAV added for 2018 as a result of the Springs at Orchard and Opus east developments.
After discussion, staff felt comfortable that a levy less than the maximum amount can be considered, and would suggest a levy of $2,450,000 which is a reduction of $54,842 from the maximum possible extensions of $2,504,842. In this option, the Village would essentially be forgoing the 2.1% CPI increase, but capturing the value of new construction under the tax extension.
Trustee Curtis said it is nice that the village is in a position to forego the CPI if it chooses. Curtis asked if, going forward, will not taking the CPI increase hinder the village from getting a recapture value on Lincoln Valley. Hannah said that as that property builds out, the village will be able to add that to the EAV and the property tax extensions and evaluate on an annual basis going forward.
Trustee Guethle asked when Woodman’s tax would be coming to the Village. Hannah said the economic incentive agreement should be satisfied in the middle of next year
5. Route 31 Tax Increment Financing District Funding Request for a Phase II
The property is 84 acres comprised of the Valley Green Golf Course, property to the east and the vacated railway. Request is for a Phase II Environmental Assessment. Phase I was conducted which yielded results that the property has a history of farming and was used as a quarry and a vacated railroad. Phase II would involve going out and investigating the physical makeup of the property and the natural layout of the property. Space Center is the perspective developer of the property.
Space Center is requesting the use of the Route 31 Tax Increment Financing District funds to finance the phase II environmental assessment. Two proposals: Carlson Environmental ($34,400) and Synergya ($31,885).
Tom Casey of Space Center, Inc. addressed the committee. The Phase II Environmental is required to determine the condition the property is in as far as what cleanup would be required.
Trustee Guethle said he was in favor of the $34,000 proposal from Carlson. Casey said both contractors are qualified and leaning towards Carlson since they have a long standing relationship with them.
Trustee Carroll asked if the Village is setting a precedent by reimbursing 100% of the cost for the Phase II Environmental Assessment. Toth said this is not under the guise of the TIF Façade Grant but rather it is leading into the feasibility of a property.
Guethle said the property has been sitting for a long time and it is on Route 31. Since the village’s plan has been to revitalize Route 31, Guethle was in favor of the proposal.
Curtis said that the village should not fund over the lowest bid. If it is a preference issue, they need to come up with the difference. Curtis added that in order to be equitable to all, we need to take the lowest bid. Casey said he had no problem going back to his board to say that they would need to eat the difference. Toth said the committee could require that the cost is “Not to exceed the lowest bid.” Carroll said was agreeable to that condition.
OLD BUSINESS - None
OTHER INFORMATION - None
TRUSTEE COMMENTS - None
Motion to adjourn made by Trustee Carroll and seconded by Trustee Curtis. All in favor. Motion approved.
Lori J. Murray