VILLAGE OF NORTH AURORA
COMMITTEE OF THE WHOLE MEETING MINUTES
Monday, March 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 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 – None
TRUSTEE COMMENTS – None
DISCUSSION
1. 2023-24 Budget Process
Administrator Bosco explained that Finance Director Paprocki was going to present an overview of the budget process which Staff was currently in the midst of.
Finance Director Paprocki began his presentation speaking about six revenue sources to the General Fund that make up 85%-90% of money in to the fund. Paprocki stated that sales tax and cannabis tax has seen tremendous growth over the past two years in part due to the 3% cannabis tax. With the state of the economy, staff expected the sales tax and cannabis tax revenue to come down a bit for the upcoming year. Paprocki went in to further detail regarding what factors went in to the projections of tax revenue for next year’s budget.
Next Paprocki spoke about Personnel costs. He stated that the Village contracted with GovHR to perform a non-union salary and classification study. This study focused on non-union positions and found comparables, in similar communities, based on position descriptions. There was also a secondary comparison done with surrounding communities. Paprocki spoke about the study results and how it impacted the upcoming budget.
Paprocki reminded the Board that during last year’s budget period, Staff had stated that they would likely be addressing staffing concerns in this upcoming budget. The staffing issues pertained to HR, administrative help within the Police Department, Code Enforcement, and Economic Development. Paprocki detailed the plan to add/shift positions within departments to address the staffing concerns. He explained how some duties of current positons were to be readjusted resulting in new position titles and the creation of 2.03 additional full time equivalent positions. The budget impact of the plan would be $201,000.
Trustee Curtis asked how sustainable would the addition of $201,000 annually be. She expressed concerns about sales tax revenues from cannabis diminishing as the market becomes more saturated with dispensaries. While Paprocki agreed with Curtis about cannabis tax revenue decreasing, he stated that the Village’s sales tax income was not solely driven by the cannabis tax, there is also sales tax revenue from other sources such as Woodman’s and the Auto Mall. The decrease in cannabis tax revenue would not have a significant impact on sales tax revenue.
Administrator Bosco spoke about the internal discussions that staff has had about solving the staffing issues with minimal financial impact to the Village. He explained the role of the newly created position, Business and Administrative Services Manager, further as well as laying out the redefined roles of the restructured positions.
Trustee Carroll expressed concerns about the increases in salaries proposed as well as the methods used to determine the increases. He suggested comparing to the private sector rather than public.
Administrator Bosco explained the process behind the proposed increases. He stated that while comparing, the Village’s goal was to be at the midpoint of the comparables. The intention behind the increases is to make the Village’s job offerings more desirable resulting in better recruitment and retention of employees.
Paprocki spoke about the position grade structuring. There was further discussion and explanation regarding grade levels and salaries related to them.
Trustee Lowery brought attention to the Finance and Accounting Manager position, he asked for an explanation on why that position was slated to have a 16% increase. Paprocki explained that the restructured position had Human Resource components to it, the study had only found one comparable. Paprocki stated that the position was an upgraded position by adding the Human Resource components to it.
Administrator Bosco explained that Staff had worked to engineer positions in an effort to make the plan financially solvent for the Village.
Trustee Lowery asked if projections had been made for subsequent years. Paprocki stated that yes they have been done and the Village Board can expect to see forecasted projection schedules in the upcoming budget.
Paprocki spoke about the trend the Village has experienced of excess funds in the General Fund that is then transferred to the Capital Fund.
Paprocki mentioned two additional positions potentially being added, a Public Works Street Laborer and a Public Works Water Laborer.
Paprocki detailed each of the proposed positions grade and salary.
Paprocki broke down the anticipated salary, insurance and pension fund costs for the upcoming year as well as costs associated with Village maintenance such as vehicle purchases.
Paprocki talked about the TIF fund and the likely transfer of funds from the Route 31 TIF to the United TIF for assistance with projects such as property purchases and Route 31/Airport Road intersection improvements.
In regard to the Water Fund, Paprocki stated that there is likely to be a 15% rate increase effective June 1, 2023 and spoke about the Water Masterplan which details items such as anticipated water infrastructure projects.
The Vehicle Equipment Fund covers vehicles on order that have yet to be received for which the funds will be carried over, as well as vehicles yet to be purchased. Paprocki went further in to detail about the vehicles that need to be purchased or replaced in the upcoming fiscal year.
Trustee Curtis asked what the average lifespan of a Police Department cruiser was. Paprocki replied that the vehicles are used for multiple years on a rotating basis. Curtis stressed that the Village purchased three last year and four are to be purchased this year, she expressed concern about the number of Police cruisers that the Village was purchasing. Chief DeLeo stated that there were 12 vehicles in their fleet and they are used on a constant basis. Paprocki stated that the Village is just at a point in the rotation cycle where many of the vehicles needed to be replaced and in upcoming years less vehicles will need to be purchased.
Paprocki spoke about the surplus money in the General fund which has historically been moved to the Capital fund. He asked the Board to consider making a more sizable contribution to the Police Pension Fund.
Paprocki talked about utilizing and obligating the $2.4 million in Recovery Act funds. Initially the funds were intended to be used for lead service line project, however the timeframe may not line up. Paprocki suggested obligating the funds to the Water Fund to be used for current water infrastructure projects.
Trustee Curtis pointed out that the Village continues to have surplus funds despite maintaining the current property tax rate. She also advised that the Village Board should remain prudent with their spending.
Trustee Salazar expressed that the proposed additional Village Staff positions and restructured positions were in the best interest of the Village and Staff in order to maintain an effective workplace. She stated that the Staff’s recommendations were made thoughtfully to minimize the impact of the budget.
Mayor Gaffino commented that the Village Staff is very conscientious about how they spend funds, referencing how thoughtfully they crafted the proposed staffing structure.
Trustee Niedzwiedz noted that for the entirety of his tenure on the Board, two years, the staff had been discussing how to add staff. He commented that much thought had been put in to the staffing structure that had been presented to the Board. He also stated that he was excited about the addition of an economic development staff person. He felt economic development was of great importance to Village residents. Niedzwiedz noted that he agreed with the previous comment that the purchase of multiple vehicles was a timing issue.
Trustee Guethle expressed disbelief that anyone would be opposed to the purchase of new police vehicles. He commented that the vehicles receive a lot of wear and tear and it is the Board’s duty to ensure that the vehicles are maintained for safety.
Trustee Carroll stated that he echoed the positive feedback given by the rest of the Board and he would like to see excess funds from the General Fund moved to the Police Pension Fund and the remainder to the Capital Fund. He also stated that he was in agreement with allocating the ARPA funds to the Water Fund.
Administrator Bosco spoke about the ARPA funds and the ongoing Lead Service Line Project. He also spoke about the construction of the new Public Works facility.
Trustee Niedzwiedz asked about the salary study and how often it is conducted. Paprocki stated that he believed that this was the first one done since the early 2000’s. Bosco added it was done in the mid 00’s and beyond that the Finance Director would look at the positions periodically during the budget cycle and compare to local towns. This was the first time in 15 plus year that the Village had decided to have a more comprehensive study completed.
Paprocki wrapped up his presentation discussing the Public Works facility. He stated that construction costs would not be included on the upcoming budget as the total costs have not yet been calculated. A budget amendment would go before the Board for approval once costs are established.
Paprocki stated that the Draft Budget would be completed in the next two weeks and will go before the Board at the Committee of the Whole meeting on March 20, 2023. The Public Hearing will be in April and then the Budget will go before the Board on May 1, 2023 for approval.
EXECUTIVE SESSION – None
ADJOURNMENT
Motion to adjourn made by Trustee Guethle and seconded by Trustee Carroll. All in favor. Motion approved.
Respectfully Submitted,
Jessi Watkins
Village Clerk
