Committee of the Whole Minutes
VILLAGE OF NORTH AURORA
COMMITTEE OF THE WHOLE MEETING MINUTES
JANUARY 21, 2019
CALL TO ORDER
Mayor Berman called the meeting to order.
In attendance: Mayor Dale Berman, Trustee Mark Gaffino, Trustee Mike Lowery, Trustee Laura Curtis, Trustee Mark Carroll, Trustee Tao Martinez, Trustee Mark Guethle, Village Clerk Lori Murray.
Staff in attendance: Village Administrator Steve Bosco, Finance Director Bill Hannah, Community & Economic Development Director Mike Toth, Public Works Director John Laskowski, Police Chief David Fisher, Atty. Roman Seckle.
AUDIENCE COMMENTS - None
TRUSTEE COMMENTS – None
1. T.I.F. Reimbursement 24 S. Lincolnway
Community & Economic Development Director Mike Toth stated that the property owners are requesting reimbursement in the amount of $39,997 for the testing and removal of the contaminated soil that was on site. Trustee Gaffino asked for further explanation and the process after the old business was torn down. Gaffino asked if there was information from the State that the property was clean. Toth said that a no further remediation letter was issued in April of 2015 which indicated that no further cleanup was necessary. The Village demolished the site and removed two underground storage tanks on the northeast corner of the property. The soil was tested by the demolition company around the tanks. It was a different portion of the property upon excavation of the actual building site where contaminated soils were found. They were located down near bedrock. Gaffino said the EPA certified this as being clean before the Village bought the property. Gaffino asked if the Village advertised this property as being clean. Answer was yes.
Toth noted that reimbursement would be through the TIF Fund.
The Village Board was in favor of reimbursement to the property owner.
2. FY 2018-19 Mid-Year Financial Update
Finance Director Bill Hannah provided a power point on the FY 2018-19 Mid-Year Financial Update. Hannah said that the budget process started last month. A status update is anticipated to be before the Government Operations Committee on March 5th and the Committee of the Whole discussion on the official draft budget on April 2nd.
A balanced budget passed for the current fiscal year. In the last 4 fiscal years the Village has had positive surpluses in the General Fund. The Village continues to maintain a 68% reserve level in the General Fund and continues to maintain a AA+ bond rating.
General Fund revenues and expenditures are just over $11 million.
Budget for the General Fund includes sales tax revenues of 43%, income tax revenue of 15% and property tax revenue of 19%.
Expenditures comprise of 50% for police, 18% for public works and 18% village hall and other governmental functions.
Sales Tax Revenue is up 1.2% for the first six (6) months of the year. Sales of vehicles are doing well. There is a mix of new businesses opening and some retail closings due to increased online shopping. The village is seeing greater increases in its use tax revenue distributed by the state.
Sales tax will remain the same at 0.2% more than last year. Last year the Village received $4,711,000 in sales tax revenue and is anticipating $4,718,000 this year.
Income Tax Revenue
Up 10.5% for the first 8 months of the fiscal year. The state budget decreased LGDF distributions by 5% in July but this was actually an increase since there was a decrease of 10% the previous year.
Current projection for Income Tax Revenue is 8.5% more than last year which is $1.72 million versus a budget of $1,660,000.
Property Tax Revenues
The Village has seen a decrease in property tax revenues in the General Fund and an increased allocation needed for the statutorily required police pension contributions.
CPI continues to remain at 2%.
The Village has received $421,000 to date versus a budget of $260,000.
Use Tax Revenue (revenues distributed on a per capita basis by the state from online retailers) The Village is seeing an increase in use tax revenue which is making up for the slowdown in increases of sales tax revenue. The Village is anticipating a 9.3% increase over last year.
Anticipating a 4.3% increase in the current year to $95,000. Trustee Guethle asked if that amount is the Village’s portion. Hannah said yes and that the $95,000 would come to the Village for the current fiscal year.
The Village did a temporary two-year reallocation to the General Fund. This is why we are anticipating receiving $144,000 to the General Fund versus $57,000 last year. The temporary two year reallocation between the General Fund and Capital Projects Fund goes back to the way it was after the end of 2020. Trustee Carroll asked if the video gaming tax includes the OTB. Hannah said the OTB is separate. Those taxes are about $40,000 to $50,000 a year.
Trustee Curtis asked why 2018-19 budgeted 149% above prior year. Hannah explained that for this year’s budget the Village reallocated the 4% Telecommunications Tax. It used to be 1% in the General Fund and 3% in the Capital Projects Fund. The Village reallocated it to be 2-1/2% in the General Fund and 1-1/2% in the Capital Projects Fund for a 2-year period to address certain initiatives in the General Fund.
Cable Franchise Revenues – possibly a 6% increase in revenues to $300,000
Total Fines and Forfeits – includes police towing fees, circuit court fines and local ordinance violations. Those types of fines and forfeits increased significantly last year to $182,000. Projected this year is $250,000.
Overall the General Fund Revenues are budgeted at $11,070,000 and the baseline projection is $11,400,000.
Will be under budget with contractual services, consultant fees and repair costs. The Village just completed its first full year with the IPPC which is the health insurance cooperative for employees. The annual increase next year will only be 1% to 4% for health insurance costs.
Revenues are 1.6% higher than last year and estimated to be $475,000 in total. This is used for road salts, crack filling repair, street light electricity and repair. This is the second year the Village is using MFT reserves to fund the LED changeover of the Village’s street lights and poles. Estimated to be fully converted to LED by 2020. Anticipating having $875,000 in the MFT Fund at the end of the current year.
Route 31 - $493,000 increment in the current fiscal year.
Marvo/John Parking Lot project is anticipated to be completed in the current year for $300,000.
The Silo refurbishing project will be carried over to the next budget year but would be partially funded out of the TIF Fund and partially with a possible grant.
The reserve is $1.5 million at the beginning of the year and figure it will be the same at the end of the current fiscal year with a 7-year remaining life on that TIF.
Capital Projects Fund (funds the annual road program and various other capital projects)
Base revenues of $1,650,000. Roughly $1,050,000 comes from the Village’s half percent non home ruled sales tax revenue. The Capital Projects Fund started the year with $3 million dollars in restricted fund balances. The Village receives an additional $250,000 on an annual basis. The estimated 2018 road program was $2 million. The Village will end the year with $2.2 million in reserves for the capital projects fund. The Road program next year will be about $1.6 million.
Water charges are up 3.8% for the current fiscal year. This was due to the 4% rate increase that was effective June 1st. This was offset by the sanitary sewer rate decrease.
The primary focus is on spending down the bond proceeds for the two new wells and the water tower.
Police Pension Fund
Police pension contributions will be $1,167,000. The Village decreased the police pension investment rate from 7% to 6.5%.
Motion to adjourn made by Trustee Guethle and seconded by Trustee Curtis. All in favor. Motion approved.
Lori J. Murray