VILLAGE OF NORTH AURORA
COMMITTEE OF THE WHOLE MEETING MINUTES
Monday, October 17, 2022
Due to the COVID-19 pandemic, the Village Board meeting was conducted live remotely
via telecommunications.
CALL TO ORDER
Mayor Gaffino called the meeting to order.
ROLL CALL
In attendance: Mayor Mark Gaffino, Trustee Mark Carroll, Trustee Laura Curtis, Trustee Mark Guethle, Trustee Mike Lowery, Trustee Todd Niedzwiedz, Trustee Carolyn Salazar
Staff in attendance: Village Administrator Steve Bosco, Finance Director Jason Paprocki, Community & Economic Development Director Mike Toth, Village Attorney Kevin Drendel, Public Works Director John Laskowski, Police Chief Joe DeLeo.
AUDIENCE COMMENTS – See below
TRUSTEE COMMENTS – None
DISCUSSION
1. Tax Levy Estimate-
Administrator Bosco explained that the Village is beginning its tax levy process, with the first step being an estimated tax levy.
Finance Director Paprocki stated that an error had been detected in the numbers provided in the meeting packets, therefore his presentation numbers would not match the previously provided packets.
Paprocki stated that he would present the calculated levy estimates during his presentation and at the next Village Board meeting the discussed estimate would come back for Board approval, then the Truth in Taxation notice would be distributed to newspapers, a public hearing would be held on December 5, 2022 followed by a Village Board vote that same evening.
In 2021 the Village extended a levy of $2,690,000 that was based off a 1.4% CPI and new construction increases. The Village actually extended $2,661,553 of that amount due to the PTELL cap, 53% of those funds were used to fund the police pension.
Paprocki explained that with PTELL limits the increase in the annual property tax levy to the annual change in the Consumer Price Index or 5%, whichever is less. The Village is able to capture any increases in the EAV related to new construction.
Paprocki stated that over the past nine years, CPI has averaged about 1.6%, in 2018 it was 2.1% but the Village chose to only take the new construction amount. He also said that CPI is at 8.2% for the current year.
Kane County released their estimates of the 2022 EAV, which projects the Village’s EAV to be $655,000,000 which is an increase of 7.6% from last year. Of that, $502,000,800 is related to residential, there is also $6.9 million of new construction. The existing property increases are about 6.5%, the residential portion of the existing construction went up 7% from last levy year. The new construction is broken down to $6.5 million in residential and $400,000 in commercial. This projects to add about $29,000 of additional property tax revenue.
Paprocki explained that funding for the police pension is a major factor of the levy. The Village has a policy to have the pension 100% funded by year 2040, the state minimum is 90% by 2040. The funding recommendation from the 2022 actuarial valuation for the police fund went from $1,443,000 to $1,652,000, an increase of over $200,000. This increase was due to updated mortality, retirement, disability and termination rate tables as well as assumed salary increase rates and lower than expected investment returns.
Paprocki presented the three prepared levy options to the Board, which included 0% CPI with new construction. 2% CPI with new construction and 5% CPI with new construction. He stated that the staff recommended the 2% option. The 2% option would yield $2,744,000, $800,000 would be for general fund purposes, $1,653,000 to the police pension fund and the remainder to the insurance fund.
The tax rate would be estimated at .418%.
Paprocki went in to more detail about the reasons behind the Village’s suggestion of 2%.
Trustees Curtis and Carroll expressed concern about raising residents’ property taxes at all with a looming recession. Trustee Curtis suggested that the Village should rely on sales tax income to cover the difference in the amount the increase would have provided. Trustee Salazar expressed concern about the increase of the police pension fund contribution and the impact the predicted recession may have on sales tax revenue. Trustee Niedzwiedz stated that while he may agree with not wanting the Village to take the 2%, he worries that if the Village took zero for this current year more may have to be taken in subsequent years to offset. Trustee Curtis countered that historically that had not been an issue.
Trustee Lowery stated that he was opposed to the Village taking 5% but was okay with 2%. He also suggested 1.6% which was the average CPI over the past nine years.
Administrator Bosco explained that the Village is highly dependent on sales tax revenues. The increase in the suggested contribution to the police pension fund, salary increases, future employees as well as many other factors were taken into consideration for the staff’s recommendation.
Trustee Carroll spoke about other taxing bodies, such as the park district and fire protection district and their ability to levy up to 5% as well. He expressed concern that others will take the opportunity to levy a full 5% raising property taxes, he stated that anything the Village could save the taxpayers, it should.
Mayor Gaffino said that he believed that the Board agreed that no one wanted to raise property taxes, he then asked if Paprocki thought the Village was in a good position with sales tax revenues, specifically with sales of vehicles. Paprocki stated that it was hard to predict, with interest rates rising it was hard to say if people would continue to want to finance auto loans. Paprocki said that sales taxes have been projected to decrease a little.
Trustee Guethle expressed concern about levying 0% due to the increase in the contribution to police pension fund.
Mayor Gaffino stated that he was interested in levying 0% in a good will gesture to residents in a trying economic time.
Despite some concerns about whether or not sales tax revenue can generate enough revenue throughout the year to make up the difference of passing on a 2% levy, the Board agreed to levying 0% and capturing new construction.
2. Towne Center Plat
Community & Economic Development Director Mike Toth introduced representatives from Rhino Investments Group who had recently purchased the inline commercial space between Target and JCPenny located in Towne Center. Rhino Investments was looking to subdivide some of the space, with Towne Center in a PUD and governed by an annexation agreement, the subdivision plat would be considered a minor change and would need Village Board approval.
Jon Wall of Rhino Investments Group presented to the Village Board their plan to subdivide one lot in to six, ultimately allowing for the opportunity to sell in pieces although the group had no current plans on selling.
Wall informed the Board that the group had been working on maintaining the leases with current tenants and procuring new ones. They recently signed a lease with Kids Empire and Hallmark which would bring the Towne Center to 90% occupied.
Wall stated that Rhino Investments had also recently resealed the parking lot as well as a restriping.
There was discussion about the Group’s approach to maintaining the property with an Owners Easement Agreement and Common Area Maintenance (CAM). Michael Sanchez of Rhino Investments Group joined in the conversation.
There was further discussion about the appearance of the property and what can be done to make the property more aesthetically appealing.
Trustee Carroll asked for clarification on Rhino Investments Group’s future plans for the units. The gentlemen explained that while currently there are not any plans of selling off subdivided units, it would be an option in the future.
Trustee Niedzwiedz asked Director Toth if he had any concerns about the development, Toth explained that he had originally had concerns about the property maintenance but stated that through discussions his concerns have eased. He also had concerns about cross access between all of the properties but the subdivision plan has cross access. Toth stated that any of his concerns had been addressed.
The Village Board was in favor of moving forward with the resubdivision.
EXECUTIVE SESSION
1. Land Acquisition
ADJOURNMENT TO EXECUTIVE SESSION
Motion to adjourn to Executive Session made by Trustee Carroll and seconded by Trustee Curtis. All in favor. Motion approved.
CALL TO ORDER
Mayor Gaffino called the meeting to order.
ROLL CALL
In attendance: Mayor Mark Gaffino, Trustee Mark Carroll, Trustee Laura Curtis, Trustee Mark Guethle, Trustee Mike Lowery, Trustee Todd Niedzwiedz, Trustee Carolyn Salazar
Staff in attendance: Village Administrator Steve Bosco, Community & Economic Development Director Mike Toth, Village Attorney Kevin Drendel.
ADJOURNMENT
Motion to adjourn made by Trustee Guethle and seconded by Trustee Salazar. All in favor. Motion approved.
Respectfully Submitted,
Jessi Watkins
Village Clerk
