Joint Finance and Public Facilities Committee Minutes

VILLAGE OF NORTH AURORA
JOINT FINANCE/PUBLIC FACILITIES
COMMITTEE MEETING MINUTES
OCTOBER 14, 2013

CALL TO ORDER – 5:30 pm
Trustee Faber called the meeting to order

ROLL CALL
In attendance: Trustee Chris Faber, Trustee Laura Curtis, Trustee Ryan Lambert, Trustee Mark Guethle, Trustee Mike Lowery, Village Clerk Lori Murray

Staff in attendance: Village Administrator Steven Bosco, Finance Director Bill Hannah, Water Superintendent Paul Young, Public Works Superintendent Mike Glock, Jim Bibby of Rempe Sharpe.

AUDIENCE COMMENTS - None

APPROVAL OF MINUTES
1. Approval of Public Facilities Committee Minutes dated May 13, 2013
Motion for approval made by Trustee Guethle and seconded by Trustee Lambert. All in favor. Motion approved.

2. Approval of Finance Committee Minutes dated April 8, 2013 and May 15, 2013
Motion for approval made by Trustee Curtis and seconded by Trustee Guethle. All in favor. Motion approved.

NEW BUSINESS
1. Discussion of Long-Term Road and Watermain Improvement Program Update
Finance Director Bill Hannah noted that Staff has met with Rempe Sharpe over the last month to update the Village’s capital plans for road and watermain improvements. Over the next 5 years, the Village is looking at $11.6 million of projected work and about $45 million through 2031.

A summary analysis showed the planned work for the next 5 years of various road segments proposed for improvement. Hannah said that the Village is comfortable funding these improvements. Rempe provided a long term update which listed the watermain and street segments currently scheduled for work to 2031. There have been several changes such as replacement of backyard watermain as early as next year.

The Village will be looking at getting preliminary engineering on various projects for fiscal 2014-15 including Oak Street reconstruction, State from Route 31 to Roberts and resurfacing of streets in Timber Oaks.

Trustee Faber asked if the Village is adding more to the road program. Jim Bibby said that the previous
program evolved out of the economy’s forecast from 2003-2006 and what it would cost to reconstruct. We took a position of what it would take, budget wise, to reconstruct an overlay every village street on a 15-year lifecycle. That calculation backed into an approximate 3 to 3.1 million dollars a year. That budget did not make any assumption to grant funding that would be available and received. The Village tried to look at what is realistic looking forward to the next 10 years. Bill looked into that and got back to us with numbers in of $1.75 to $1.8 million a year for a 22 year lifecycle with proper maintenance, sealing and patching.

Trustee Curtis asked what percentage of revenue the Village is losing as the EAVs are coming down. Is the rate of taxation coming down in the same increments as the EAVs or have we been able to keep it consistent. Curtis said it is disconcerting to hear that the Village went from being able to allocate $3 million a year to $2 million now. Hannah noted that the Village never allocated 3 million a year for the street program, and that the Village has been more aggressive with street program funding over the last several years. Hannah added that the EAV does not have a direct bearing on village funding since the Village is subject to the tax cap and property tax revenue funds operations not capital programs. Hannah said that the most revenues for the street program are restricted by the State or committed by the Village Board for capital purposes. Curtis asked if we need to take an ultra conservative approach to the road program. Hannah said that the Village is fairly aggressive compared to other communities regarding the road program. Trustee Lambert asked if the extra million dollars is reflected in grants. Bibby said that almost half of the differential is either grants that the Village has been awarded or grants that the Village is hopeful to be awarded.

2. Discussion of 2013 Tax Levy Estimate
Bill Hannah stated that property tax revenues compose 20% of all of the Village’s general fund revenues. The Village is subject to the tax cap since we are a non-home rule community. Property taxes cannot increase more than the rate of inflation which for this year is 1.7%. Another component is the new construction that is added to the property tax calculations. Through the various levies the Village will be allocating all of the increase to police pension and liability insurance costs

The Village is projecting property taxes that will remain in the general fund will be decreasing by 3.5% in 2014-15.

EAV – Village see a decrease due to the three-year average sales, but hopeful that the Village will see increases soon once property values start to increase. Trustee Curtis asked at what point will the Village see reductions in what we are requiring from the residential tax base. Hannah said we are seeing increases in sales tax revenue, relying less on a percentage basis for property taxes. Curtis asked why the Village takes the full levy amount each year. Hannah explained that the Village cannot defer the inflation allocation and if the Village does not take it now, it is gone forever.

3. Discussion of Special Assessment #3 Sharon and Long Close-Out
In the 1970s the Village created a special assessment for the construction of water and sewer improvements in the Sharon and Long neighborhood. There were 66 properties that elected to participate in the special assessment. Hannah said that the Village is working to close out the original construction fund through the passage of an Ordinance declaring a rebate and working with the courts for approval. Money will be rebated to all of the current homeowners after court confirmation. The recapture process will still continue as the remaining homes elect to connect to the system.

4. Discussion of Parkway Tree Replacement Initiatives for 2013
Public Works Superintendent Mike Glock provided an update on the tree situation. The Village went out to bid for 300 trees. Glock said that there are an additional 250 trees he would like to have planted in the spring. Village Administrator Steven Bosco noted that if the Village plants 530 trees, it not only replaces every tree, but closes the gap in getting a tree that is removed planted. Bids will be open tomorrow morning. Committees were in agreement to move forward with this plan.

OLD BUSINESS - None
OTHER INFORMATION - None
TRUSTEE COMMENTS - None

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

Respectfully Submitted,

Lori J. Murray
Village Clerk