South Elgin Board of Trustees conducts a budget workshop
South Elgin Board of Trustees met Monday, Feb. 27.
The vision and mission of the Board of Trustees is to promote a high quality of life for all residents; to maintain a prosperous financial base; to preserve South Elgin's unique heritage; and to conserve its distinct natural and historical character.
Here are the minutes as provided by South Elgin:
VILLAGE OF SOUTH ELGIN
SPECIAL MEETING/BUDGET WORKSHOP MINUTES
1. Call to Order
The meeting was called to order at 6:01 pm by Village President Steven Ward at the South Elgin Public Services Facility, 1000 Bowes Road, South Elgin, Illinois.
2. Roll Call
The following were present: Steven Ward, Village President; Margaret Gray, Village Clerk; and Trustees Scott Richmond, Greg Lieser, Jennifer Barconi, Mike Kolodziej, Lisa Guess and John Sweet.
Staff present were: Steven Super, Village Administrator; Megan Golden, Deputy Village Administrator and Director of Administrative Services; Kim Wascher, Director of Parks & Recreation, Shane Hamilton, Parks Supervisor, Jerry Krawczyk, Police Chief; Randy Endean, Deputy Chief; Richard Gallas, Director of Public Works; and Marc Mclaughlin, Director of Community Development.
3. Pledge of Allegiance
The Pledge of Allegiance was led by President Ward.
4 Discussion: Proposed Capital Plan and Budget for the Fiscal Year Beginning May 1, 2017 and Ending April 30, 2018
Steve Super welcomed everyone to the proposed capital plan and budget workshop for the fiscal year beginning May 1, 2017 and ending April 30, 2018.
The Village's capital improvements are funded within separate funds, including the Water/Sewer - Water Construction, Infrastructure improvements, Capital Projects and Tax Increment Financing. Within the Capital Projects Found are the Equipment Replacement Fund and the Capital Projects Program. Within the Infrastructure improvements Fund is the Motor Fuel Tax Program, Developer Contributions and Parks improvements Program. Water Construction: Steve Super explained that the: Water/Sewer fund is a Proprietary Fund, and as such has different accounting rules than the General Fund. It is more closely associated with a business and therefore does not keep,¡$rate funds within the fund. Rather, staff separates the funds to allow funding for capital needs versus funding for emergency operation's needs.
Steve turned the discussion over to Richard Gallas, Director of Public Works.
Rich Gallas reported that the Water Construction Program separates certain capital expenses associated with the water distribution system from operating expenses detailed in the Water and Sewer Program. Fiscal Year 2018 expenses of 52,799,000 includes modernization and SCADA improvements to Well 4, 7,8,9, 10, 11 and 12; Crane Road/Thornwood lift station improvements; Well #11 maintenance; water main replacements on Center, Cherry, River, East Plum and Locust; and Umbdenstock Road sewer lining.
Trustee Richmond asked if this is the first of a multi-year replacement program. Mr. Gallas stated that he is trying to get it all done in one year. Trustee Barconi asked how long the upgrades last. Rich answered that we got 15 years out of the last, but he added that he does not think these will last as long. We will tap into fiber optics. Rich said he expects 10 more years out of Well #11. The water main being replaced is 4" and is at least 50 years old.
Trustee Lieser said $3.2 million was budgeted and not used. He asked if this was part of the funding for the new Public Works facility. Steve explained money came from other funds but ends up being the same amount spent.
Capital Projects Program: Steve Super explained that the two basic funds are Capital Projects and Infrastructure Improvement. Within the Capital Projects Fund there is a fund called Capital Projects which is the general purpose funding or catch all fund. These funds can be used for any capital expenditure the Village wishes, or can be transferred out for other purposes. The Village assigned some of the Capital Funds into the Equipment Replacement Fund, monies set aside for replacing the rolling stock and other major equipment the Village owns. The Infrastructure Improvement Funds represent restricted monies which can only be used for specific purposes. The Motor Fuel Taxes must be spent on State approved road repairs and replacement. The Developer Contributions Fund collects revenues from new development to be spent on capital needs that arise because of new development. This fund fluctuates as new housing projects occur. The Parks Improvement Fund is also funded primarily through revenues collected for new housing projects and fluctuates accordingly.
Trustee Kolodziej clarified the fund balance. President Ward asked if we need that large a fund balance. He commented that he would like to lower the minimum charge for OCWRD customers. Trustee Richmond asked when the next water rate study is scheduled. Trustee Kolodziej asked if changing the rate will still keep 50% of funds in reserves. Steve Super said that this is in control of the Board. It does not have to do with what is in the General Fund. Trustee Barconi asked if the study could be done now. Steve Super said the finances of the Village are getting better. This is the last year of payments ($300,000) for the eastside water treatment system; another $300,000 was saved with the refunding of bonds from Otter Creek. He promised to look into having another water rate study done by the next Budget Meeting.
Steve Super reported that program revenues ($3,048,064) are derived from reserved sales taxes, inter-fund transfers (including a fund balance transfer from the General Fund) and grants. Expenses ($5,062,000) cover the Village wide pavement study; sidewalk installations; 125 W. State payment; Otter Creek storm water improvements; building renovations at Village Hall; and the Annual Street Maintenance Program. Other improvements include the McDonald Road Bridge Reconstruction Project; the extension of Robertson Road; and renovations at 800 Michigan and 125 W. State.
Kim Wascher reported on Village Hall renovation and other improvements. She said staff was not successful in obtaining a 303 grant for Otter Creek shoreline stabilization, but added that the engineering for the 110 feet that needs repair had already been done and explained those are emergency repairs which must be done. She added that the bridge installation is taking care of 200 feet of repair work for the shoreline.
Richard Gallas discussed road resurfacing & reconstruction and other improvements. He explained that a pavement condition study is done every five years. Trustee Richmond commended that staff already warned Little League that the area around Lions Park will be under construction and to please be patient.
Equipment Replacement: Megan Golden reported that program revenues ($587,956) are derived from inter-fund transfers and investment income. ERF is a pay as you go fund.
Expenses ($L,017,525) cover scheduled replacements of vehicles ($837,350) and equipment ($180,175) throughout the operating departments. Jerry Krawczyk said squad cars typically last seven to eight years or about 115,000 miles when taken out of service. Megan said this fund is in good shape with the purchase six police vehicles, three pieces of equipment and one emergency replacement (a vehicle totaled in an accident). Trustee Richmond asked if trade-in value is considered. Megan said this has not been previously included. It is just money used for the next vehicle.
Motor Fuel Tax: Rich Gallas reported that program revenues ($560,500) are derived from State of lllinois Motor Fuel Tax Allocations and investment income. Expenses ($600,000) cover resurfacing and construction of State-approved projects.
Developer Contributions: Marc McLaughlin reported that program revenues ($240,840) are based on an estimated 102 housing starts in FY17-18. Expenses ($179,800) include a $6,000 transfer to the Parks lmprovements Fund for tree replacements and a $173,800 transfer to Capital Projects from the Springs of South Elgin recapture payment.
Parks improvements: Kim Wascher reviewed parks improvements at Jim Hansen Park project. Kim reported that program revenues ($186,247) are derived from a transfer from Developer Contributions. Expenses ($268,548) cover Jim Hansen Park improvements; tree replacements and seal coating and striping of parking lots.
Tax increment Financing District #l/Village Center: Marc McLaughlin reported that program revenues are derived from increased property value within the district accumulated in Revenue Account# 4039 Re-Tax-Redevelopment. FY 1T-18 revenues ($646,200) reflect an increase from the prior year due to an expected increase in development activity. Expenses ($1,458,195) cover River Place, River Crossing and Waters Edge agreements; TIF-eligible improvements along Center, River and Middle Streets; State Street Bridge costs; demolition of 148 W. Spring Street and miscellaneous streetscape and land acquisition costs.
Tax increment Financing District #2/North LaFox Street Corridor: Marc McLaughlin reported that program revenues ($45,000) are derived from increased property value within the district accumulated in Revenue Account# 4039 Re-Tax-Redevelopment. Expenses ($35,500) cover miscellaneous costs within the district.
Capital Policy Proposals: Steve Super stated that the proposed capital plan and budget will fund exciting projects which will add value to the community in the coming year.
5. Public Comment
Robert Piatt of 370 South LaFox explained that he is a big user of the bike path and he is interested in the progress on it-referring to the purchase of the property by the county so that it can reopen.
A motion made by Trustee Guess to adjourn the Special Meeting/Budget Workshop was seconded by Trustee Barconi. All aye by voice vote. The meeting adjourned at 7:35 pm.
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