VILLAGE OF NORTH AURORA
OPERATIONS COMMITTEE MEETING AGENDA
AUGUST 6, 2018
CALL TO ORDER
Trustee Guethle called the meeting to order.
ROLL CALL
In attendance: Trustee Mark Guethle, Trustee Mark Carroll, Mayor Dale Berman, 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 5/7/18
Motion for approval made by Trustee Carroll and seconded by Trustee Guethle. All in favor. Motion approved (2-0).
NEW BUSINESS
1. Police Actuarial Valuation
Finance Director Bill Hannah stated that the Village is required by law to maintain a police pension trust fund. Currently there are 29 active police officers and 15 retirees or other vested beneficiaries. The Village currently pays out $860,000 annually. The police officers currently pay 9.91% of their salary as officer contributions. Benefits are defined by state statute. Officers hired after January 1, 2011 are provided reduced benefits, known as Tier 2. Per state law, the Village must be 90% funded by 2040. The Village adopted a resolution in 2011 for 100% funding. Every year the Village does an actuarial of the fund. The valuation as of May 31, 2017 reflected that the Village had $25.6 million in accrued pension liabilities and about $16.2 million in actuarial assets. The Village’s contribution to the fund reflects $1,000,047.00 a year. The Village is in the process of finalizing the valuation for May 31, 2018. Foster and Foster wants the Village to consider three changes for the upcoming valuation.
i. New retirement disability and termination rates – Employees were staying longer in their positions than assumed and there was less turnover. That change in assumption would lower the liabilities and contributions.
ii. Salary increase assumptions – Wage growth has not been what it was in the past. This reduced salary growth assumptions.
iii. Interest investment assumption – Consider a discussion of moving from 7% to 6-1/2%. MB Financial also provided their 10-outlook assumption and recommended a 6-1/2% level.
Hannah stated that the net impact is that the first 2 changes would be a net decrease on the upcoming contribution and the change from 7% to 6-1/2% would be an increase. About $160,000 would be the impact for next year’s police pension contribution by implementing these changes.
Hannah added that if the Village moves forward with these changes, they would be implemented for the December 2018 levy and be effective with the next upcoming budget for 2020.
2. 110 John Street T.I.F. Grant Application
Community & Economic Development Director Mike Toth said that the property owner is seeking $2,462.50 for five new awnings on the building. Lowest of the bids was for $4,925. Awnings are a TIF eligible expense and therefore there were no issues from the committee regarding this request.
3. Abandoned Vehicles Text Amendment
Toth said that Chapter 8 of the Municipal Code declares abandoned vehicles to be unlawful and a public nuisance. Chapter 8.04 also has exemptions for abandoned vehicles. One of those is historical vehicles over 25 years of age. This presents issues when there are historical vehicles that are in a state of disrepair. Toth said that the text amendment would remove the exemption vehicles over 25 years of age. There were no issues from the committee on this request.
ADJOURNMENT
Motion to adjourn made by Trustee Carroll and seconded by Trustee Guethle. All in favor. Motion approved.
Respectfully Submitted,
Lori J. Murray
Village Clerk
