Village Board

EAST TROY VILLAGE BOARD MINUTES June 26, 2017 Page 1 of 3 Call Meeting to Order; Pledge of Allegiance Administrator Suhm verified the meeting was posted according to law. Roll Call: President Seager called the meeting to order at 6:30 p.m. Present: President Scott Seager, Trustees John Alexander, Alexander Alger, Matt Johnson, and Ann Zess Excused: Absent: Trustee John Jacoby and Forty Renucci Others: Chief Boyes, DPW Director Equitz, Administrator Suhm, Attorney Gray (excused from meeting after item 2) Citizen Participation No citizen participation. Consent Agenda (One motion and second will approve all of the following items. Any item may be pulled from the list and voted on separately.) 1. Approval Minutes – 6/19/2017 2. Operator’s Licenses – Sebastian T. Smith, Joseph E. Morton Motion by Trustee Johnson, second by Trustee Alexander to approve the consent agenda. Motion carried. Miscellaneous Business 1. Village Board iPad policy Administrator Suhm explained that the policy had been drafted to address public records and security issues that may arise. Motion by Trustee Johnson, second by Trustee Alexander to approve. Motion carried. 2. Resolution 2017-07 - Resolution Authorizing the Issuance and Establishing Parameters for the Sale of Not to Exceed $1,365,000 General Obligation Refunding Bonds, Series 2017A a. Resolution b. Pre-Sale Report Dawn Gunderson, Ehlers, Inc., presented the Pre-Sale Report for the issuance of the General Obligation Bonds. She explained that the Village has an outstanding Water Revenue Bond that has a fairly high interest rate. Several options were explored and the consideration of refunding using general obligation borrowing capacity and saving cash on hand for financing future utility projects when interest rates will likely be higher. This refunding would provide a savings to the water fund by utilizing the debt service reserve fund that is no longer required. There will be a slight cost in 2017 due to the utilization of cash reserves with future savings estimated at $42,000 annually. She presented a comparison of general obligation  EAST TROY VILLAGE BOARD MINUTES June 26, 2017 Page 2 of 3 bonds to revenue bonds and explained the revenue bonds carry higher costs with less savings to the water utility. Their recommendation was to consider the refunding action with the General Obligation borrowing capacity as a less expensive way to issue debt. Motion by Trustee Zess, second by Trustee Alexander to approve Res 2017-07. Motion carried. Attorney Gray left the meeting. Adjourn to Committee of the Whole Motion by President Seager, second by Trustee Alexander to adjourn to Committee of the Whole. Motion carried. Discussion Item: 1. Ehlers, Inc. – Financial planning workshop with Ehlers – fourth session will focus on Projected Tax Levy and Rates, CIP and Fund Forecasts for selected funds. a. Handouts (Updated slideshow to reflect the airport levy support decreasing after capital improvements was distributed at the meeting) b. Slides Dawn Gunderson, Ehler’s, Inc., discussed the fourth financial planning workshop including tax levies, rates, capital improvement projects and fund forecasting for selected funds. The models were based on a five-year forecast and focused on funds with levy support (General Fund, Library Fund, Parks & Recreation Fund, Airport Fund, Capital Improvement Projects Fund (CIP). A five-year debt/borrowing plan was presented. Discussion included: • Debt Service is exempt from levy limits and the levy can be increased for debt service • Future levy limits and expenditure constraints, debt financial plan impact on the levy when supporting projects with borrowing • Levy increases are limited by net new construction • Options to work with the levy limits for borrowing, avoiding future gaps, impact on taxes and funding needed projects • Fund balance could be utilized to reduce debt issuance for capital projects • Growth would allow for changes in levy limits Summary points presented included: • Review non-levy revenue and fees annually to ensure they are at a level to sustain the service/item and consider historical trends for budgeting • Utilization of fund balance for capital expenses, reducing the dependency on debt as well as freeing up some levy for operations • Continue with economic development efforts as any increase in net new construction allows for increase in levy without increase to existing tax payers  EAST TROY VILLAGE BOARD MINUTES June 26, 2017 Page 3 of 3 • Consider maximizing levy limit capacity so not to reduce availability in future years The Board did not direct Ms. Gunderson to make any changes to the plan. She reported Ehler’s, Inc. will provide the Board with a full, formal five-year financial plan based on the models and assumptions used. Adjourn Motion by Trustee Alexander, second by Trustee Johnson. Motion carried 8:47 p.m. Respectfully Submitted, Eileen Suhm Administrator