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An Attentive Municipal Organization that Connects with Community, Commerce, and Nature.

Committee of the Whole Minutes

VILLAGE OF NORTH AURORA
COMMITTEE OF THE WHOLE MEETING MINUTES
Monday, February 6, 2023

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 Laura Curtis, Trustee Mark Guethle, Trustee Mike Lowery, Trustee Todd Niedzwiedz

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 – None
TRUSTEE COMMENTS – None

DISCUSSION

1. TIF Request
Community & Economic Development Director Mike Toth stated that the property owner of 307 S. Lincolnway had approached the Village for financial assistance from the Route 31 TIF district. The property was the vacant land directly north of the Eden’s Supportive Living on the east side of Route 31 between Eden’s and the tollway. The owner was requesting $66,167 in TIF reimbursement.
Property owner Al Broholm, also a Village resident at 518 Bede Circle, stated he has lived in North Aurora for approximately 35 years.
Mr. Broholm spoke about how he acquired the property and how he came to need a curb cut along route 31 for which he was now seeking TIF a reimbursement. Broholm stated that the previous owner of the property had sold the rights to curb cut access to the State, and he was never told about the curb cut restrictions, nor did the title for the property reflect that restriction. Broholm sought to regain the right for a curb cut from the State in 2010 but ultimately decided against it. Broholm said that while he has had this property for sale for many years, an interested party had walked away from a sale three years ago because of the inconvenience of having to deal with the State for access to perform a curb cut. After that sale fell through, Broholm decided to pursue the curb cut through the State once again, this process has taken two years. He is requesting $66,167 from the TIF to fund the purchase of access back from the State, Broholm states that without the access for a curb cut the property will never be developed.
Both Trustees Guethle and Lowery stated that they would be in favor of awarding TIF funding for this purpose. They both would like to see the land developed.
Trustee Curtis stated that she doesn’t know if it is the Village’s role to make a property owner’s land whole. She questioned if this would set precedent for other land owners with adverse conditions with their properties to ask the Village for funding to fix it. Curtis asked Broholm why he wasn’t pursuing a way to remedy this with the title company. Broholm stated that he did not find out that the access was sold to the state until two years post purchase, at which time he was in talks with the state to sell the property to them for tollway access. When that fell through, he stated that the State kept the property tied up for various reasons for multiple years. Broholm stated that this was a unique situation.
Trustee Guethle asked Director Toth is the property was eligible for TIF funding and how much was available in the fund. Toth stated that yes, the property is eligible and the current amount in the fund was $1.4 million. Trustee Guethle reaffirmed his belief that the funds should be awarded.
Trustee Curtis stated that she did not disagree that funding should be awarded, she questioned whether or not the entirety of the cost of curb cut access should be funded. She said that the Village would be adding value to the property, to which Guethle stated that the Village would be adding value to the community.
Trustee Niedzwiedz asked if the property was developed, would it then begin adding funding back in to the TIF. Director Toth stated that the property was currently paying in to the TIF, however the TIF expires in three years leaving little time for that to happen.
Administrator Bosco added that this property was located in the original section of the Lincolnway TIF. When the United TIF was created, the section south of I88 was left in the original TIF expiring in three years.
Trustee Carroll asked if this was the only vacant property remaining in that expiring section of the TIF district. Mayor Gaffino stated that there were more, Toth confirming this stating that there were vacant properties where homes were torn down with use of TIF funds and a vacant commercial property directly south of the Firestone. Trustee Carroll asked if there were any remaining properties with curb cut issues that may approach the Village for assistance. Toth stated that to his knowledge, there were none.
Trustee Carroll stated that he thought the Village could share the cost of the curb cut with the property owner.
Mr. Broholm stated that there is a sewer in the middle of the property that the Village needs to access once a year. Broholm had Attorney Kevin Drendel draw up an access easement for the Village so the Village would not have to contact him each time they needed to access the property. Broholm stated that he received an opinion of the value of that access to be $70,000 which he donated to the Village. Broholm also said that two years ago he contacted the Village in regard to that access, thinking that the property would be easier to sell without the easement but the Village did not want to give up the access. He encouraged the Trustees to take that in to account in making their decision.
Trustee Curtis asked if the TIF policy was to match funds. Director Toth stated that the TIF Façade grant is a program that offers matching funds, up to $20,000, for exterior improvements. Trustee Curtis then stated that the Village is being asked to provide full funding to a piece of land, not a developed business. She stated that she was not against providing funding, however she stated that the Village needs to be fair to all the other people that apply.
Trustee Guethle stated that the Village has given $250,000 in TIF funds to Moka to help them open their business, with sidewalks and repair work. Guethle said that if the Village could help Moka pay for some of their work, the Village could afford $66,000 for a curb cut for a building that will enhance the view when you enter into North Aurora.
Trustee Carroll suggested paying Broholm $66,000 for the easement to avoid setting a precedent with the TIF funding. However he then stated that he would be okay with providing the $66,000 in TIF funding for the curb cut.
Mayor Gaffino stated that he was in favor of providing the full TIF funding and that he would like to see that land developed as well.
Trustee Niedzwiedz stated that he would be in favor of offering full TIF funding.
Director Toth stated that the Village would need a reimbursement agreement, he asked if there would be anything that the Board would like to see go in to the agreement. He reminded the Board of previous agreements made with business for TIF funding, what were the circumstances and terms that were eventually agreed to.
Trustee Carroll asked if the Village could restrict the property owner from coming back to the Village with another request. Toth stated yes, that had been done with previous business owners as well. Trustee Niedzwiedz asked if that restriction would only be in effect for the current owner or would it apply to future owners. The Board was in agreement that they would not want to restrict future property owners from requesting TIF funding, for fear that it may hurt the sale and development of the property. The Board wanted the agreement to reflect a restriction on the current owner from coming back to the Board with additional TIF requests in the property. If Broholm has any interest in the property, no additional TIF funding will be considered.
Attorney Drendel stated that he has worked with Al Broholm in the past and will be representing the Village in this agreement. There was discussion regarding what would need to be done to formally address that.
2. Water Rates

Finance Director Jason Paprocki stated that although water rates were discussed at the previous Committee of the Whole meeting, the Board had requested additional information on the high water consumers and what an additional fee to high water consumers would look like.
Paprocki began by recapping the information presented at the previous COW meeting. There were two rate increase options. The first option was to increase the water rate only, 50% over a five year span, beginning with a 15% increase June 1, 2023. The second option was a lower percentage of rate increase over five years, approximately 42% but the $16 minimum charge would increase to $20. Both options, at the end of five years would garner similar results, a 56%-57% reserve within the Water Fund. Both options assume that the Village has a large reserve in water currently due to delays in some capital projects such as the water tower not having been built. There is also the $2.4 million of Recovery Act money currently allocated toward capital projects. Administrator Bosco added that that is assuming that the Board will obligate the ARPA funds to those projects.
At the previous COW meeting, the Board preferred the first option, of leaving the $16 minimum fee in place. Paprocki corrected information he had previously provided the Board, saying that initially he stated that 1800 users utilized less than 3,000 gallons bi-monthly but the correct number is 882 and 519 that use between 3,000 and 4,000 gallons, while 522 use 4,000 to 5,000 gallons.
Paprocki reminded the Board that water rates changed in 2010 from $10.90 for the first 3,000 gallons to $16 and the usage rate changed from $3.41 to $3.55 per each additional 1,000 gallons. Those rates stayed the same until 2018 when the water rate increased from $3.55 to $3.70 but the sanitary sewer rate was reduced by $.20.
Paprocki then reviewed for the Board where staff sees the Water Fund projections for the next five years. He stated that if there were no increase, he expected that within the next three years for the Water Fund reserve to be depleted.
The Village is anticipating, in the next ten years, just under $15 million of water main replacements, treatment plant improvements at about $2.5 million, the Lead Service Line Replacement project is underway which can cost anywhere from $2 million to $4 million dollars, and if the central water tower is built that can cost another just under $5 million.
Paprocki then reviewed the rate increase that the Board preferred, no increase to the $16 base rate but an incremental increase each year to the additional per 1,000 gallons.
Paprocki then reviewed the local municipal comparables for water rates. The Village was the lowest, a will remain to be after a rate increase.
Paprocki moved on to breaking down the usage of water by account. He stated that 6,000 residential users consume 51% of the water, there are 287 commercial accounts using 44% of the water as well as a few apartment accounts which use a little bit of the water.
Amongst the residential accounts 14.5% use 0-3,000 gallons, 96.4% of users consume 20,000 gallons or less on a bi-monthly average. On the commercial side, 175 accounts, on average, are using 20,000 gallons or less bi-monthly. Paprocki stated that the Village has about four commercial accounts that use 71% of all the commercial water which is about 30% of the water within the whole system. The apartment accounts were a challenge to break down because each account represents multiple units.
Paprocki spoke about connection fees and that everyone pays an initial fee to become part of the water system.
Trustee Lowery stated that when he asked about implementing a fee for high rate users, he was speaking about the industrial users, in an effort to guide them into being more conservative with their water usage.
Paprocki then spoke about potential rate tiers for high water users. He presented multiple options. In one scenario he stated that if commercial users with bi-monthly water usage over 100,000,000 gallons would pay the standard rate for up to 1,000,000 gallons used and then an additional $2 for each 1,000 gallons beyond that, this would bring in an additional $341,000 annually.
Mayor Gaffino asked how this would help the residents. Paprocki explained that based on a residential usage of 11,000 gallons bi-monthly, it would save a residential account over $9 a year.
Discussion about how the small savings for residential accounts may provide wiggle room in the event that water rates need to be raised again. There was further debate on whether raising rates on high water consuming commercial accounts to offset residential fees was appropriate and/or wise.
Administrator Bosco explained that the businesses, just as residents do, pay their proportional share. He stated that things balance in the end. An example Bosco used, the money collected from businesses higher proportional water bills help to pay for residential infrastructure maintenance.
Administrator Bosco explained that while this was a five year plan for water rate increases, it can be reviewed annually and adjustments can be made.
The Village Board declined the additional increase on commercial businesses above and beyond the rate increase for all users previously discussed at the January 16, 2023 Committee of the Whole meeting. The rate increase plan would be brought back before the Board for formal approval in May 2023. The water rates will be monitored and adjusted annually if needed.

ADJOURNMENT TO EXECUTIVE SESSION

Motion to adjourn to Executive Session made by Trustee Guethle and seconded by Trustee Niedzwiedz. All in favor. Motion approved.

EXECUTIVE SESSION – Collective Bargaining

RETURN FROM EXECUTIVE SESSION

CALL TO ORDER
Mayor Gaffino called the meeting to order.

ROLL CALL
In attendance: Mayor Mark Gaffino, Trustee Laura Curtis, Trustee Mark Guethle, Trustee Mike Lowery, Trustee Todd Niedzwiedz

Staff in attendance: Village Administrator Steve Bosco, Village Attorney Kevin Drendel, Public Works Director John Laskowski, Police Chief Joe DeLeo.

ADJOURNMENT

Motion to adjourn made by Trustee Guethle and seconded by Trustee Curtis. All in favor. Motion approved.

Respectfully Submitted,

Jessi Watkins
Village Clerk

 

 

 

 

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