VILLAGE OF NORTH AURORA
OPERATIONS COMMITTEE MEETING MINUTES
MARCH 2, 2020
CALL TO ORDER
Trustee Mark Guethle called the meeting to order.
ROLL CALL
In attendance: Mayor Dale Berman, Trustee Laura Curtis, Trustee Mike Lowery, Trustee Mark Guethle, Trustee Mark Gaffino, Village Administrator Steve Bosco, Finance Director Bill Hannah, Community & Economic Development Director Mike Toth,
AUDIENCE COMMENTS – None
APPROVAL OF MINUTES
1. Approval of the Operations Committee Minutes dated February 3, 2020
Motion for approval made by Trustee Lowery and seconded by Trustee Gaffino. All in favor. Motion approved.
NEW BUSINESS
1. Budget Overview Presentation
Finance Director Bill Hannah provided the budget overview presentation to the operations committee. Budget planning started last November/December. The mid-year financial update was presented to the board in January. In February, staff presented the board with a budget amendment for the current fiscal year. The board was also asked to consider an amendment transferring $750,000, current year, to the Capital Projects Fund. The draft budget is scheduled to be discussed by the Village Board at the Committee of the Whole meeting in two weeks.
Hannah discussed the five events/actions/developments that improved the fiscal and budget outlook going forward.
1. Increase in the village’s 1% sales tax to the General Fund. The village is looking at a $460,000 increase over a two year period from $4.7 million last fiscal year and projecting $5.17 million next fiscal year.
2. Increase in the use tax of $125,000 over a two year period.
3. Anticipation of starting to collect the 3% cannabis tax which will go into effect on July 1st. Estimating $600,000 on an annual basis.
4. The village withdrew from the consortium, resulting in a $45,000 decrease in expenditures.
5. Decrease in sales tax rebates from $450,000 in the current year to $175,000 next year.
Hannah noted that there are operating cost increases and normal budgetary operating increases that have to be considered and some of the above items are being used to fund the normal increases. Overall, the summary is very positive.
The major budgetary adjustments that have been discussed for next year is staffing for police and public safety. This would result in increasing the minimums per shift and address some of the long term police needs.
The budget adjustment will also include full funding for a village engineer.
Regarding the 3% local cannabis tax, the village will, for the first year, record it in the general fund and having an offset transfer out to the capital projects fund. The village can evaluate that after a year when there is more certainty about the kinds of revenue streams.
The budget for the general fund next year is about $12.5 million revenues and expenditures. Trustee Curtis asked what is being done so that the village does not budget beyond its means and asked why the expenses and budget are at the same level. Hannah said some of the operating needs have been given to us by departments going forward. Some are increases in pension costs and some are one-time items. The village is comfortable going forward that these numbers will not split. Hannah added that the one thing the village does not want to do is have a structural imbalance or spending more than we are going to take in long term. There are adjustments that can be made if things change economically.
Hannah noted that the expenditures column includes transfers out. The $625,000 of the transfers out will occur every year until 2029. After that point the village is done paying off the debt for the police station.
(Trustee Carroll arrived)
Trustee Lowery asked if the cannabis tax is above and beyond the sales tax of cannabis. Village Administrator Steve Bosco said that the village currently gets 1-1/2% of all cannabis sales. One percent goes to the general fund and a half percent goes to the capital fund. The additional 3% is what the village passed by ordinance. The village will be collecting 4-1/2% as of July 1st with 1% going to the general fund and 3-1/2% going to the capital fund.
Other budget items noted in the presentation:
-Personnel: budget would include 2 additional police officers. This would allow up to 6 officers on each of the 4 patrol shifts and get to a point with minimums of 4 per shift.
-Full funding of the new village engineer will be funded out of the general fund.
-Pay adjustment for non-union staff of 2.25%
-Increasing for the police pension contribution. Minimum required is $1,349,000 and the village will be increasing that by $50,000.
Trustee Lowery asked about the village engineer position and when it was discussed. Hannah said it was part of a budget amendment in February and was brought to the full board at the second meeting of that month.
-Police dispatch fees to increase to $240,000 which is consistent with the current fiscal year.
T-here will be an expenditure to update the website on the back end.
-The village is looking at options of the contracting for recording of board minutes going forward.
-Update of the current comprehensive plan to incorporate changes. Cost would be $10,000.
-Slight increase to parkway tree trimming from $50,000 budgeted to $70,000.
-Sales tax rebate decrease – the village finished paying off the Woodman’s rebate this current fiscal year.
-Final bond payment for the library. That payment will be $409,000 and the village board agreed to reduce the property taxes necessary to make the payment by $115,000 with that additional abatement done in December.
-Capital/MFT/TIF – The village is analyzing the potential replacement of streetlight poles along Orchard/Gateway. That project could involve up to 48 poles and potentially $400,000 depending on the scope of the project. The village has been receiving more MFT revenues since July.
-Current estimate for the road program will be $1.2 million.
-The village will be carrying over the budgeted cost for Riverfront Park Plaza improvements of $375,000 and the silo project of $450,000.
-Route 31 projects – sidewalks, geometric improvements and potential watermain replacement. There is nothing specific in the budget at this time but may come up in the future. Staff will be having discussions with IDOT. Trustee Guethle asked how old the watermain is. Bosco said it is about 60 years old. Public Works Director John Laskowski said that there are several projects the village would like to coordinate with IDOT. The idea is to get these projects on their radar so that if they have a project on Route 31, the village could partner with them and save on the costs on road reconstruction or sidewalk installation. It would minimize the inconvenience on the motorists and they could also to include these projects in their multi-year plans.
-Continued development of conceptual renovation and expansion of public works is ongoing. To be presented to committee sometime next month.
-Water Fund – Estimated cost is $1.92 million for the new water tower. Well 5 was in the budget this year and will be carried over to the next fiscal year.
-The village is required to do a risk and resilience assessment and emergency response plan for the water system by 2021. Those types of projects cost about $90,000.
-Vehicle/Capital/IT – Purchasing 3 new Ford Explorer vehicles – will repurpose a 2010 Escape
One will replace a 2010 Caravan and a 2016 patrol Explorer.
-Purchase of a new 5-yard dump truck for Public works. This would replace a 2005 International that the village has had for 15 years and would be used as a backup.
The official budget will be completed in the next 2 weeks for discussion at the March 16th meeting. The official public hearing will be scheduled for April 20th. Tentative approval is set for May 4th.
OLD BUSINESS – None
OTHER INFORMATION – None
TRUSTEE COMMENTS – None
ADJOURNMENT
Motion to adjourn made by Trustee Carroll and seconded by Mayor Berman. All in favor. Motion approved.
Respectfully Submitted,
Lori J. Murray
Village Clerk
