VILLAGE OF NORTH AURORA
COMMITTEE OF THE WHOLE MEETING MINUTES
Monday, April 15, 2024
CALL TO ORDER
Mayor Gaffino called the meeting to order.
ROLL CALL
In attendance: Mayor Mark Gaffino, Trustee Jason Christiansen, 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 Development Director Nathan Darga, Village Attorney Kevin Drendel, Public Works Director Brian Richter, Police Chief Joe DeLeo.
AUDIENCE COMMENTS – None
TRUSTEE COMMENTS – None
DISCUSSION
- 2024-2025 Draft Budget Follow-Up
Administrator Bosco introduced the item stating that it would be a review of changes that were made to the 2024-2025 draft budget. It would also be an opportunity for any questions that the Village Board may have about the Draft Budget before it goes before the Board for approval in May.
Finance Director Paprocki stated that there were only a few changes he wanted to address. He first went through the budget changes to the General Fund.
- Income Tax revenue was raised $5,000 based on new projections.
- Video Gaming Tax revenue was raised $6,000 based on projections
- Additional Community Development training was added at a cost of $1,000
Resulting in the General Fund budgeted increase from $50,810 to $6,810.
Paprocki stated that there were a few position title changes:
- Business Services Manager (formerly Business and Administrative Services Manager)
- Community Relations Coordinator (formerly Community and Board Relations Coordinator)
- Information Technology/GIS Analyst (formerly Information Technology Assistant)
Administrator Bosco added that the job duties had not changed for the first two listed.
Paprocki then discussed the budget changes to the Special Service Area Fund. He reminded the Board that $10,000 had been added to the Oak Hill SSA for pond improvement review which then added an $8,870 decrease to the fund.
In regard to changes to the Capital Projects Fund, the positive referendum vote in the non-home rule sales tax increased revenue by $1,283,000 while budgeted improvements to Veterans Memorial were included at $50,000 resulting in a budgeted decrease from ($2,877,000) to ($1,654,000).
In the Waterworks Fund, budget changes included:
- ETP HVAC unit from $16,000 to $20,000
- WTP HVAC unit from $16,000 to $20,000
- Risk and Resiliency Assessment and Emergency Response Plan update – $25,000
- Waterworks Fund budgeted decrease changes from (3,299,030) to ($3,332,030)
Paprocki said that there would be some additional changes when the Budget goes before the Village Board at the next meeting, such as the adjustment to the Road Program.
Mayor Gaffino asked if any additional road work might be done with the savings from the lower than expected cost for the Road Program. Administrator Bosco stated that the funds would be added back to the Capital Fund for future projects that may be larger in scope.
- Public Works Building Funding Options
Administrator Bosco introduced the agenda item, stating that the passage of the referendum would increase the Capital Projects Fund by a projected $1.4 million annually.
Administrator Bosco spoke about the presented information which included an itemized list of the components to the building cost estimate of $18,820,122 for the new Public Works building. Bosco stated that the estimate had gone up from $17.6 million. The new $18.8 million was a pared down number after staff made adjustments to the design.
Administrator Bosco then spoke about how the Village was going to break down every aspect of the construction into bid packages, with 25-30 projects each bid separately. This would offer the Village the opportunity to choose the lower bidder for each aspect of the project, also minimizing the upcharge for subcontractors.
A tentative timeline of the project was presented, this included the PUD and Land Swap Approval before the Board on May 6, 2024 with the project going out to bid soon thereafter and construction potentially beginning by the end of summer 2024. This timeline offers a projected end date of December 2025.
Bosco spoke about the cost saving design of the building.
Director Paprocki stated that the Capital Fund was currently very healthy and the Village would likely end the fiscal year in the $13 million dollar range. In regard to the funding of the Public Works facility, Paprocki stated that it would likely be a combination of debt and Capital Projects Fund reserve. He stated that the Village was looking into alternate revenue source bonds pledged with the Village’s new non-home rule sales tax. The projected sales tax revenue of $1.4 million annually would go toward the debt, trying to keep the debt payment in the $1 million to $1.2 million range to ensure a cushion between revenue and debt payment. Staff was looking at 20 year terms with an assumed 4.5%-5.0% interest rate. Paprocki stated that the main goal was to maintain an adequate Capital Reserve Fund balance.
Information was presented on three potential debt amount scenarios, $13 million, $14 million and $15 million. Paprocki specifically spoke about the $14 million option, utilizing $4.8 million of reserves to offset the cost. This would create a projected debt payment of $1,123,000 which was $277k less than projected new revenue. This, along with additional upcoming projected revenue source increases would mean a projected Capital Projects Fund reserve of $6 million over the next 5 years. This was a number, Paprocki stated, that the staff felt comfortable with.
This projection was created assuming that some of the Capital Reserve Funds to pay off the Police Department debt the Village currently had. Paying off the Police Department debt early would eliminate an annual General Fund debt transfer of $640,000 and offset the proposed grocery tax elimination. There was currently a remaining balance of $2,940,000 and up to $44,000 of accrued interest due July 1, 2024. The current year General Fund will likely end up with a $1.9 million dollar surplus in addition to the $600,000 already budgeted which could be transferred to the Capital Projects Fund and earmarked for the payment of the debt. Within the Police Debt Service Fund there was a balance of $297,000 which could be used along with $187,000 out of the Capital Projects Fund. In that scenario, the Village would not be carrying two debt issuances where sales tax was a pledged revenue source to pay the debt back. Paying it off early would also save $226,000 in interest payments.
Trustee Curtis asked about the option of financing $13,000,000 rather than $14,000,000. She expressed that she would like to see the Village take on less debt, if possible. She stated that the savings in interest payments that the Village would enjoy if the Police Department debt was paid off early was a fraction of the savings the Village would benefit from financing less for the Public Works project. She stated that she would like to maximize the Village’s debt payment savings. Director Paprocki stated that it was something that staff could look into, however they had felt more comfortable having more funding available in the Capital Projects Fund for projects that may arise. He said that the approach was to maximize the reserve and the debt payment, but other options can be examined.
Administrator Bosco explained that the benefit of having cash on hand was that sometimes projects cost a lot more than expected. The flexibility of having an extra million dollars on hand was one of the reasons why the middle tier, or $14,000,000 debt was suggested.
Trustee Curtis asked if the estimates were based on the future growth of the retail base. Administrator Bosco reminded the Board that the auto sales and grocery taxes would not be affected by the referendum, and the loss of the grocery sales tax eliminating an estimated $700,000 in revenue. Administrator Bosco offered further explanation and history regarding this topic.
Director Paprocki spoke about the Village’s next steps, they included approving the land swap agreement, finalizing the Public Works building and beginning the bid process, and hiring a financial advisor and bond counsel for debt insurance. Should the Village choose to move forward with the bond issuance, the Village would need to hold a Bond Issue Notifications Act hearing, adopt a bond authorizing ordinance, and adopt bond ordinance/approve bond sale.
Administrator Bosco added that bonds can be refinanced if rates go down.
- Petition 24-02; Village Public Works Facility
Administrator Bosco state that the Village was the petitioner seeking to construct a new Public Works facility on the site currently occupied by the Southern Kane County Training Association and leaving the current building intact on what was currently the Village’s property. This topic had been discussed at the previous Plan Commission meeting. This discussion would be a recap of the Plan Commission meeting and to answer any questions the Board may have. If there were no major concerns, the item would go before the Village Board for approval at the May 6, 2024 meeting.
Community Development Director Darga stated that the PUD had four components to it, the first being rezoning. The Village’s current property was zoned I-2 while the SKCTA property was zones I-1, the PUD would rezone the Village’s property to I-1.
The second item for approval would be a Special Use for PUD. There were several code exceptions included as part of the site plan. Darga stated that most of those were because the Village would be creating new property lines, some of which are close to existing buildings. There was a code exception for parking, and calling out the training center’s existing structures that are outside of the code. The site plan and plat would be part of the ordinance as well.
The Plan Commission recommended approval with conditions. These conditions included cohesive landscaping between the two properties, the entrance to the yard on the west side of lot 2 shall be screened and no training activities shall take place in the well setback area or detention pond without the consent and approval of the Village.
Administrator Bosco pointed out parts of the site plan that may change slightly.
There were no questions from the Village Board.
- Petition 24-08; 161 South Lincolnway Special Use
Administrator Bosco explained that Verilife Cannabis dispensary, currently located at 161 S. Lincolnway would be relocating to their new facility at the intersection of Oak St. and Orchard Road within a few weeks. Cannect Wellness Dispensary would like to move into the vacated location at 161 S. Lincolnway.
Director Darga reminded the Village Board that Pharmacann (dba Verilife) had been located at 161 S. Lincolnway since 2014 and began selling adult use cannabis in 2020. In 2022 Pharmacann received an approval to expand their facility, however they did not build the expansion. The petitioner CW Dispensary was seeking approval to assume the vacated space, utilizing units 301,302 and 304 which was the original area utilized by Pharmacann as well as the space that was approved for expansion in 2022. CW Dispensary was planning on hiring 15-20 people. General parking requirements were met by the facility.
This petition had been before the Plan Commission with a few conditions such as no onsite consumption, and management of parking.
Darga pointed out the company’s logo stating that the logo would be displayed on signage.
David Michaud, COO of Cannect Wellness was on hand to give the Village Board an overview of the company and their plans for the site. He stated that he was also the owner of 161 S. Lincolnway.
There were no questions from the Village Board.
EXECUTIVE SESSION –
- Land Acquisition
- Sale of Property/Land Acquisition
ADJOURNMENT TO EXECUTIVE SESSION
Motion to adjourn to Executive Session made by Trustee Guethle and seconded by Trustee Niedzwiedz. All in favor. Motion approved.
RETURN FROM EXECUTIVE SESSION
CALL TO ORDER
Mayor Gaffino called the meeting to order.
ROLL CALL
In attendance: Mayor Mark Gaffino, Trustee Jason Christiansen, 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 Development Director Nathan Darga, Village Attorney Kevin Drendel, Public Works Director Brian Richter, Police Chief Joe DeLeo.
ADJOURNMENT
Motion to adjourn made by Trustee Guethle and seconded by Trustee Salazar. All in favor. Motion approved.
Respectfully Submitted,
Jessi Watkins
Village Clerk
