Village Board

VILLAGE OF HUNTLEY VILLAGE BOARD MEETING October 25, 2018 MINUTES CALL TO ORDER: A meeting of the Village Board of the Village of Huntley was called to order on Thursday, October 25, 2018 at 7:00 p.m. in the Municipal Complex, Village Board Room, 10987 Main St., Huntley, Illinois 60142. ATTENDANCE: PRESENT: Mayor Charles Sass; Trustees: Ronda Goldman, Tim Hoeft, Niko Kanakaris, Harry Leopold, John Piwko and JR Westberg. ABSENT: None IN ATTENDANCE: Village Manager David Johnson, Assistant Village Manager Lisa Armour, Management Assistant Barbara Read, Director of Development Services Charles Nordman, Director of Public Works and Engineering Tim Farrell, Chief of Police Robert Porter, Deputy Chief Todd Fulton, Director of Finance Cathy Haley, Human Resources Manager, Chrissy Hoover and Village Attorney John Cowlin. PLEDGE OF ALLEGIANCE: Mayor Sass led the Pledge of Allegiance. PUBLIC COMMENTS: None ITEMS FOR DISCUSSION AND CONSIDERATION: a) Consideration – Approval of the October 25, 2018 Bill List in the amount of $270,691.09 Mayor Sass asked if the Village Board had any comments or questions; there were none. A MOTION was made to approve the October 25, 2018 Bill List in the amount of $270,691.09. MOTION: Trustee Piwko SECOND: Trustee Goldman AYES: Trustees: Goldman, Hoeft, Kanakaris, Leopold, Piwko and Westberg NAYS: None ABSENT: None The motion carried: 6-0-0 b) Consideration – A Resolution Authorizing an Off-Premise Sign Request for the First Congregational Church Holiday Vendor Boutique Mayor Sass reported that the First Congregational Church of Huntley (Church) has requested to place temporary signs in the Village rights-of-way promoting their Holiday Vendor Boutique being held on Saturday, November 10, 2018. This annual event is held each year to raise funds for the Church. The Church is requesting to post 6 (3’x 8’) banners two (2) weeks prior to the event in the following 10.25.18 VB Meeting 1 locations: 1. RT 47 and Main Street (N/E) 2. Algonquin Road and Haligus Road (E/B) 3. Algonquin Road and Haligus Road (W/B) 4. Huntley/Dundee Road and Main Street 5. Haligus and Huntley/Dundee Road 6. Reed Road and Haligus Road Staff Analysis The Village’s Sign Regulations allow off-premise signs provided they receive Village Board approval and adherence to certain standards and criteria. The following table details the criteria and the proposed sign: Criteria Proposed Sign adjacent to and intended to be viewed from Route 47 A majority of the signs are proposed adjacent to Only Route 47; however, several are along other Village roadways. Prohibited within a residentially zoned property A majority of the signs are proposed adjacent to commercially zoned property; however, several are proposed near residential subdivisions Maximum area of a sign face, whether a single sign face, The proposed signage is 24.0 square feet two back-to-back, or a V-shaped type sign is 100 square feet Maximum height is 15 feet above grade The height of the signs is less than 3.5 feet above grade The location shall not obscure or interfere with an official The proposed sign locations will meet this traffic control device or railroad safety signal or sign, or requirement obstruct or interfere with a driver’s view of approaching, merging or intersecting traffic for a distance of 500 feet The Church acknowledges that some sites may not be under the Village’s jurisdiction. Additionally, no signs will be posted on private property without prior authorization of the property owner and no more than one (1) sign will be placed at any of the specified locations. As this event is an annual event, off-premise sign authorization is requested for the three-year period 2018 through 2020 under the following conditions: 1. A temporary sign permit application is completed. 2. No sign/banner shall be placed on private property without prior authorization of the property owner. 3. All signs shall be removed the day after the event. Financial Impact The temporary sign permit fees are waived by Section 156.115 of the Zoning Ordinance. Mayor Sass asked if the Village Board had any comments or questions. Trustee Westberg suggested that when the banners are installed that they be hung with bungies so that they would possibly withstand the wind better. There were no other comments or questions. 10.25.18 VB Meeting 2 A MOTION was made approve a Resolution granting an off-premise sign permit to the First Congregational Church for the Holiday Vendor Boutique for the period of 2018 through 2020 with the following conditions: 1. A temporary sign permit application is completed. 2. No sign/banner shall be placed on private property without prior authorization of the property owner. 3. All signs shall be removed the day after the event. MOTION: Trustee Leopold SECOND: Trustee Hoeft AYES: Trustees: Goldman, Hoeft, Kanakaris, Leopold, Piwko and Westberg NAYS: None ABSENT: None The motion carried: 6-0-0 c) Conceptual Review of a Proposed Site Plan and Building Elevations for a Thorntons Convenience Store/Gasoline Station and Car Wash at the Northwest Corner of Route 47 and Kreutzer Road Director of Development Services Charles Nordman reviewed a Power Point presentation and reported that Thorntons has submitted conceptual plans for a proposed ±4,400 square foot convenience store/gasoline station with ten (10) fueling dispensers which provide twenty (20) fueling positions for vehicles. Additionally, a ±5,000 square foot car wash is proposed to the north of the Thorntons. The proposed 6.45-acre site includes area for stormwater detention and compensatory storage for the modified floodplain. Staff Analysis The site is zoned C-2 Regional Retail and is subject to the Regency Square Development Guidelines. Site Plan The Thorntons site plan proposes a ±4,400 square foot convenience store with parking for 22 vehicles which exceeds the required 18 parking spaces. The site plan also includes parking stalls that are 10 feet in width and up to 20 feet in depth, which exceeds the minimum required dimensions. The width of the parking lot drive aisle is also greater than required and will measure up to 30 feet in width. The building’s main entrance will be orientated toward Route 47 with access to the site being provided by a right-in/right-out on Route 47, a right-in/right-out on Kreutzer Road, and a full access at the intersection of Kreutzer Road and Princeton Drive. The petitioner has submitted the conceptual plan to the Illinois Department of Transportation (IDOT) and is awaiting comments in regard to the proposed site access. The proposed car wash would consist of a ±5,000 square foot building with parking/vacuums for fourteen (14) vehicles. Stacking for the car wash will be provided in three (3) lanes that could accommodate stacking for approximately 23 vehicles prior to the pay canopy. In conjunction with the development of the site, the Village’s Subdivision Ordinance requires the burial of overhead utility lines across the Route 47 frontage of the property. The overhead utility lines across the frontage of the southern portion of Regency Square were previously buried with the original development. Building Elevations 10.25.18 VB Meeting 3 The proposed elevations for the Thorntons includes the use of brick as the primary material and stacked stone at the base of the building. The entrance to the store would be surrounded with a red raised parapet and aluminum canopy. A similar aluminum canopy would also be located over the storefront windows. Roof-top mechanical equipment would be screened with an aluminum louver system. The proposed building elevations are comparable to the Thorntons that was recently constructed in Algonquin at 2095 E. Algonquin Road (a photo of the Algonquin store is provided as an attachment). The proposed elevations for the car wash would also utilize brick as the primary material and stacked stone at the base of the building and for vertical columns, although the color of the brick would differ from that used on the Thorntons building. The front of the car wash building would include a red standing seam aluminum roof and red aluminum canopies above each of the windows. Signage The proposed Thorntons sign plan includes four wall signs stating “Thorntons”. One wall sign would be located over the building’s front entrance and three would be located on the fueling canopy. A proposed ground sign has not been provided as part of the concept review materials, but will be required should the petitioner proceed in the formal review process. The number of wall signs would require relief from the Sign Ordinance which allows one wall sign per street frontage. The site has frontage on Route 47 and Kreutzer Road, thus allowing two (2) signs. Relief would be required for two additional signs. The proposed signage for the car wash is conceptually shown on the building renderings. As shown, three wall signs are proposed which state “$3.00 Car Wash” and “Free Vacuums”. A ground sign is also provided on the rendering which includes a brick base to match the building. Similar to Thorntons, the proposed wall signs for the car wash would also require relief to allow two additional signs. More detailed plans will need to be submitted for the proposed signage should the petitioner move forward through the review process. Required Approvals Based on the conceptual plans submitted the property will require the following review and approvals from the Plan Commission and Village Board: 1. Plat of Subdivision 2. Special Use Permit for a Gasoline Station and Car Wash 3. Site Plan Review, including any necessary relief Courtesy Review The petitioner has requested the Village Board to conceptually review the proposed plans. The Village Board is not required to provide a formal position statement on the proposal, and the petitioner shall not be required to comply with any position statements which are offered. The concept review shall provide the petitioner with initial comments and concerns that should be considered as they proceed in the formal review process. The Village Board and its individual members are not bound by any comments made during the discussion and the petitioner acknowledges that it cannot claim in the future any reliance whatsoever on those comments. Strategic Plan Priority The 2016-2020 Strategic Plan identifies “Promote New Business Development, Retention, and Expansion” as a Strategic Priority, “Attract and Retain Businesses to Enhance Tax Base and Create New Jobs” as a goal. Mayor Sass asked if the Village Board had any comments or questions. 10.25.18 VB Meeting 4 Trustee Kanakaris asked if the parking spaces were 10 feet wide; Director Nordman stated that they will be 10 feet wide. Trustee Kanakaris asked if there were other elevations available recommending the addition of a gable roof to make the building look better. Mr. Mike MacKinnon representing Thorntons, the contract purchaser, stated that they would be able to make some variations to the design to separate it from looking like the Thorntons in Algonquin. Trustee Westberg asked if they considered building more north on Route 47; Mr. MacKinnon stated that there have been contracts in the area Trustee Westberg is suggesting but they have not worked out. Trustee Leopold welcomed Thorntons to Huntley. Mayor Sass stated that he has concerns with the right-in / right-out on Kreutzer Road and stated that he is interested to hear what the State has to say about the site. Mr. MacKinnon stated that they are expecting the State’s comments within the next week. Trustee Goldman asked, if approved, when Thorntons expects to open in Huntley. Mr. MacKinnon stated that due to working with IDOT a spring 2020 opening is anticipated. There were no other comments or questions. As this was a concept review, no action was required on this agenda item. d) Consideration of a Resolution i. To Authorize the Local Public Agency Agreement for Federal Participation and Appropriating $4,000.00 for the Reed Road Multi-Use Path Project ii. To Approve a Preliminary Engineering Services Agreement for Federal Participation for the Reed Road Multi-Use Path – Christopher B. Burke Engineering, Ltd in an Amount Not To Exceed $20,000.00 Director of Public Works and Engineering Timothy Farrell reported that for engineering agreements $25,000 or greater which include federal funds, Local Planning Agencies (LPAs), such as the Village of Huntley, are required to use Quality Based Selection (QBS) which is fully compliant with Federal requirements of 23 CFR 172 and the Brooks Act. As sub-grantees, LPAs must use competitive negotiation supported by qualification based selection procedures. This is the primary method of procurement for engineering and design related services using federal funding. Local preference or existing firm relationships can no longer be used as criteria to award engineering services for federally funded projects over the threshold amount. Staff Analysis On November 16, 2017, the Village Board authorized submittal of an Illinois Transportation Enhancement Program (ITEP) grant application for the Reed Road Multi-Use Path (MUP) between Vine Street and IL Route 47. Subsequently, the Village has been awarded an ITEP grant in the amount of $192,000.00, representing 80% of the costs for Phase II and Phase III engineering and construction of the MUP. The remaining 20% of the project costs are to be matched by the Village. The Phase I Engineering was funded entirely by the Village and has already been completed. A breakdown of the project costs is summarized in the following table: Federal Amount Village Amount Total Amount 10.25.18 VB Meeting 5  Phase I Engineering 0.00 $15,000 $15,000 Phase II Design Engineering $16,000 $4,000 $20,000 Phase III Construction Engineering $16,000 $4,000 $20,000 Construction $160,000 $40,000 $200,000 Total Project Costs $192,000 $63,000 $255,000 On July 26, 2018, the Village Board adopted a QBS Policy and Procedures for selecting an engineering consultant. Following the QBS process, the selection team has identified Christopher B. Burke Engineering, LTD as the highest ranked consultant. The other two consultants that submitted a Statement of Qualifications included Fehr-Graham and Burns & McDonnell. The Village is targeting a June 2019 IDOT Bid Letting. To qualify for the letting, the Village must submit pre-final plans by January, 2019. Strategic Plan Priority The 2016-2020 Strategic Plan identifies Preserve and Enhance Quality of Life for Village Residents as a strategic priority and “Identify additional locations and funding sources for multi-use paths” as an objective. Financial Impact An amendment to the FY2018 Budget is required to include funding for the Reed Road Multi-Use Path design engineering services in the amount of $20,000 in the Street Improvement Fund, 04-10-2-6320. The ITEP grant will reimburse $16,000 (80%) to the Village. Phase III engineering and construction will be budgeted in the FY19 budget. Mayor Sass asked if the Village Board had any comments or questions; there were none. A MOTION was made to authorize the Local Public Agency Agreement for Federal Participation and appropriating $4,000.00 for the Reed Road Multi-Use Path Project; MOTION: Trustee Hoeft SECOND: Trustee Piwko AYES: Trustees: Goldman, Hoeft, Kanakaris, Leopold, Piwko and Westberg NAYS: None ABSENT: None The motion carried: 6-0-0 A MOTION was made to approve a Preliminary Engineering Services Agreement for Federal Participation for the Reed Road Multi-Use Path - Christopher B. Burke Engineering, Ltd in an Amount Not To Exceed $20,000.00. MOTION: Trustee Leopold SECOND: Trustee Hoeft AYES: Trustees: Goldman, Hoeft, Kanakaris, Leopold, Piwko and Westberg NAYS: None ABSENT: None The motion carried: 6-0-0 e) Consideration – Approval of Payout Request No. 2 to Mauro Sewer Construction Inc. for the 2018 Water Main Replacement Program in the amount of $167,324.72 10.25.18 VB Meeting 6 Director of Public Works and Engineering Timothy Farrell reported that on May 24, 2018, the Village Board approved a Resolution Authorizing a Bid Award to Mauro Sewer Construction Inc. in the amount of $407,963.00 for the 2018 Water Main Replacement Program. Mauro Sewer Construction, Inc. has submitted the second payout request for the 2018 Water Main Replacement Program. Staff has reviewed the request and all is in order for approval. Staff Analysis Total Previous Amount Pay Request Retention Completed Work Payments Requested #1 $151,540.00 $15,154.00 $0.00 $136,386.00 #2 $319,695.50 $15,984.78 $136,386.00 $167,324.72 Financial Impact The FY2018 Budget includes $325,000 in the Water Equipment Replacement Fund line item 515-00-00- 8004 for the 2018 Water Main Replacement Program. The base bid amount was for $282,703.00 which included water main replacement of approximately 1,350 feet of 10” pipe, valve vaults, fire hydrants and new service connections and Option #1 Bid amount of $407,963.00 which included the base bid work and an additional 825 feet of 10” pipe on the Smith Court loop. Option #1 was approved by the Village Board on May 24, 2018 with a necessary budget amendment approved on August 9, 2018. Mayor Sass asked if the Village Board had any comments or questions; there were none. A MOTION was made to Approve Payout Request No. 2 to Mauro Sewer Construction, Inc. in the Amount of $167,324.72 for the work completed under the 2018 Water Main Replacement Program. MOTION: Trustee Westberg SECOND: Trustee Goldman AYES: Trustees: Goldman, Hoeft, Kanakaris, Leopold, Piwko and Westberg NAYS: None ABSENT: None The motion carried: 6-0-0 f) Consideration – Approval of Payout Request No. 6 (Final) in the amount of $12,070.52 to Alliance Contractors, Inc. for 1st Street Parking Lot Improvements Director of Public Works and Engineering Timothy Farrell reported that on July 27, 2017 the Village Board of Trustees awarded a contract for the 1st Street Parking Lot Improvements to Alliance Contractors, Inc. The revised contract amount is $473,764. The project includes the parking lot improvements at 1st Street as well as resurfacing a portion of the parking lot at First Congregational Church to be used for overflow parking. Alliance Contractors, Inc. has submitted payout request No. 6 and final for the 1st Street Parking Lot Improvements. Village staff and the Village’s project engineer, CBBEL, have reviewed the request and all is in order for payout. The final cost is approximately $4,465 over the revised contract amount mainly due to winter conditions (2017/2018 season), water well abandonment and an additional 10.25.18 VB Meeting 7 dumpster enclosure segment for screening. Staff Analysis Total Pay Request Completed Work Retention Previous Payments Amount Requested #1 $58,000.00 $0.00 $0.00 $58,000.00 #2 $88,979.00 $4,448.95 $58,000.00 $26,530.05 #3 $173,982.95 $8,699.15 $84,530.05 $80,753.75 #4 $397,007.51 $19,850.38 $165,283.80 $211,873.33 #5 $470,867.54 $4,708.68 $377,157.13 $89,001.73 #6 $478,229.38 $0.00 $466,158.86 $12,070.52 Financial Impact A budget amendment that transferred funds from the Capital Projects Fund to the Downtown TIF Fund 16-10-2-6320 was previously approved for the project in 2017. A budget amendment carrying unexpended funds from FY2017 into FY2018 was approved on May 24, 2018. The $4,465 overage will be absorbed within the total fund budget and no additional budget amendment is being requested at this time. Mayor Sass asked where the overage would be paid from; Village Manager Johnson reported that it would be absorbed in the fund budget. Director of Finance Cathy Haley added that the overage can be absorbed in the fund as other projects came in below the budgeted amount. There were no other comments or questions. A MOTION was made to Approve Payout Request No. 6 (Final) in the amount of $12,070.52 to Alliance Contractors, Inc. for the 1st Street Parking Lot Improvements. MOTION: Trustee Hoeft SECOND: Trustee Piwko AYES: Trustees: Goldman, Hoeft, Kanakaris, Leopold, Piwko and Westberg NAYS: None ABSENT: None The motion carried: 6-0-0 g) Consideration – Approval of Payout Request No. 1 (Final) to Behm Pavement Maintenance, Inc. for the Village of Huntley Parking Lot Maintenance of the Municipal Complex, McHenry County Visitor Center, and Public Parking Lot in the amount of $28,940.00 Director of Public Works and Engineering Timothy Farrell reported that on March 22, 2018, the Village Board approved a Resolution Authorizing a contract with Behm Pavement Maintenance, Inc. in the amount of $28,940.00 for the Parking Lot Maintenance of the Municipal Complex, McHenry County Visitor Center, and Public Parking Lot downtown. Behm Pavement Maintenance, Inc. has submitted the first and final payout request for the project. Staff has reviewed the request and all is in order for Village Board consideration. 10.25.18 VB Meeting 8 Staff Analysis Total Previous Amount Pay Request Retention Completed Work Payments Requested #1 (Final) $28,940.00 None $0.00 $28,940.00 Financial Impact The FY2018 Budget includes $30,000 in the Municipal Buildings Fund, 05-10-4-7600. Mayor Sass asked if the Village Board had any comments or questions; there were none. A MOTION was made to Approve Payout Request No. 1 (Final) to Behm Pavement Maintenance, Inc. in the amount of $28,940.00 for the work completed under the Parking Lot Maintenance Contract for 2018. MOTION: Trustee Piwko SECOND: Trustee Leopold AYES: Trustees: Goldman, Hoeft, Kanakaris, Leopold, Piwko and Westberg NAYS: None ABSENT: None The motion carried: 6-0-0 h) Consideration – Approval of Payout Request No. 2 (Final) to Behm Pavement Maintenance, Inc. for the Village of Huntley 2018 Crack Sealing Program in the amount of $10,773.10 Director of Public Works and Engineering Timothy Farrell reported that on February 8, 2018, the Village Board approved a Resolution Authorizing a Bid Award to Behm Pavement Maintenance, Inc. in the not-to-exceed amount of $50,000.00 for the 2018 Crack Sealing Program. The Crack Sealing Program continued in Sun City NH 8 for the preparation of Liquid Road asphalt sealer across the entire roadway through a joint venture with Behm Pavement Maintenance where the Village agreed to purchase the Liquid Road material ($6,400) and supply the traffic control and Behm supplied the labor and equipment, free of charge. Behm was willing to waive the labor costs in an effort to promote the Liquid Road product for use on roadways in the future. Behm Pavement Maintenance, Inc. has submitted the second and final payout request for the 2018 Crack Sealing Program, and all is in order for Village Board consideration. Staff Analysis Total Previous Amount Pay Request Retention Completed Work Payments Requested #2 (Final) $45,113.80 None $34,340.70 $10,773.10 Financial Impact The FY2018 Budget includes $50,000 in the Street Improvement Fund line item 04-10-4-7500 for the 2018 Crack Sealing Program. Mayor Sass asked if the Village Board had any comments or questions; there were none. A MOTION was made to approve Payout Request No. 2 (Final) to Behm Pavement Maintenance, 10.25.18 VB Meeting 9 Inc. in the amount of $10,773.10 for the work completed under the 2018 Crack Sealing Program. MOTION: Trustee Leopold SECOND: Trustee Kanakaris AYES: Trustees: Goldman, Hoeft, Kanakaris, Leopold, Piwko and Westberg NAYS: None ABSENT: None The motion carried: 6-0-0 i) Discussion - Village of Huntley 2018 Property Tax Levy Director of Finance Cathy Haley reported that the Village Board must approve the annual property tax levy in sufficient time to file the approved property tax levy ordinance with the County Clerks by Wednesday December 26, 2018, since the last Tuesday of December falls on Christmas Day. Staff Analysis The following points are important facts to consider in formulating the property tax levy: • The tax levy process is an estimation based on assessed valuations, estimated new construction and annexations. • Final valuations are also affected by rate multipliers imposed by the Counties and the State of Illinois. • Property tax revenues do not affect any enterprise funds, such as the water/sewer funds. The water/sewer funds operate like a business where user fees are the primary source of revenue. • Final tax rates are calculated by the counties in the spring of 2019. Truth-in-Taxation Disclosure Requirements As a home rule municipality the Village is not limited by the Property Tax Extension Law Limit (PTELL); however, the Village is required to comply with the “Truth in Taxation Law.” This law places requirements on the Village in the adoption of the 2018 property tax levy if the proposed 2018 gross property tax levy is 105% greater than the 2017 net property tax extension. Financial Impact McHenry County is estimating a 6.39% increase in valuation of which $1,787,072 is attributable to new construction. Kane County is estimating a 5.94% increase in valuation of which $2,576,383 is attributable to new construction. The total estimated EAV for the Village is the highest it has ever been as can been seen in the chart below. % % Levy Rate EAV Change Levy Rate EAV Change 2009 $876,512,659 3.94% 2014 $678,590,982 0.76% 2010 $796,378,817 -9.14% 2015 $727,796,554 7.25% 2011 $790,820,406 -0.70% 2016 $821,394,208 12.86% 2012 $711,860,053 -9.98% 2017 $871,310,736 6.08% 2013 $673,475,479 -5.39% 2018 est. $925,612,066 6.23% Tax levy funds are allocated for General Fund operations, IMRF employer obligations, Social Security employer obligations, Police Pension Fund employer obligations and Liability Insurance costs. 10.25.18 VB Meeting 10  2017 Tax 2019 Levy Budgeted Extensions Dollars Difference IMRF $250,000 $270,000 ($20,000) Social Security $250,000 $398,000 ($148,000) Liability Insurance $250,000 $295,000 ($45,000) Police Pension $813,386 $855,198 ($41,812) Costs for the Police Pension Fund and IMRF are based on calculations done by a third party actuary. This year’s actuarial calculation costs for the Police Pension Fund obligation increased by $41,812 in part due to a statutory requirement that the Village’s pension fund be at least 90% funded by 2040. Based on the above information three options are presented for review and discussion. OPTION #1 – Fully Fund the Police Pension Obligation Increasing the levy line for the Police Pension Fund obligation will result in a total increase to the Village’s levy of 0.90%. This dollar increase in conjunction with the increasing EAV could decrease the rate, lowering it from .5319 to .5052 as shown in the chart below. 2018 REQUESTED TAX $ Increase/ % Increase/ LEVY - Police Pension 2017 Tax Levy 2018 Estimated Decrease over Decrease over Increase Only Extensions Tax Levy Request prior year prior year Corporate $3,070,917 $3,070,917 $0 0.00% IMRF $250,000 $250,000 $0 0.00% Social Security $250,000 $250,000 $0 0.00% Liability Insurance $250,000 $250,000 $0 0.00% Cemetery $0 $0 $0 0.00% Police Pension $813,386 $855,198 $41,812 5.14% TOTAL $4,634,303 $4,676,115 $41,812 0.90% Levy Year Rate EAV Dollars Increase 2017 0.5319 $871,310,736 $4,634,303 2018 0.5052 $925,612,066 $4,676,115 $41,812 The chart below shows the impact of option #1 on an individual homeowner with a home value of $250,000. PROPERTY TAX COMPUTATION CALCULATION COMPARISON BETWEEN 2017 AND 2018 - Fully Fund Police Pension Obligation 2017 Market Value 2017 2018 Difference Home $ 250,000.00 EAV $83,333 $88,108 $.005 - Per Day $0.16 - Per Tax Rate 0.5319% 0.5052% Month 10.25.18 VB Meeting 11  Tax Bill $443 $445 $2 - Annually OPTION #2 – Fully Fund the Police Pension Obligation and Increase levy for employer Social Security obligation As the EAV rises, additional dollars could be levied while lowering the rate. (EAV/100 x Tax Rate = Levy Dollars). This dollar increase in conjunction with the increasing EAV shows the rate dropping from .5319 to .5106 as shown in the chart below. Increasing the levy lines for the Police Pension Fund obligation, and the Social Security employer obligation for the Village. $ Increase/ 2018 REQUESTED TAX LEVY - Decrease % Increase/ Police Pension and Social 2017 Tax Levy 2018 Estimated over prior Decrease over Security Increase Extensions Tax Levy Request year prior year Corporate $3,070,917 $3,070,917 $0 0.00% IMRF $250,000 $250,000 $0 0.00% Social Security $250,000 $300,000 $50,000 20.00% Liability Insurance $250,000 $250,000 $0 0.00% Audit $0 $0 $0 0.00% Cemetery $0 $0 $0 0.00% Police Pension $813,386 $855,198 $41,812 5.14% TOTAL $4,634,303 $4,726,115 $91,812 1.98% Levy Year Rate EAV Dollars Increase 2017 0.5319 $871,310,736 $4,634,303 2018 0.5106 $925,612,066 $4,726,115 $91,812 The chart below shows the impact of option #2 on an individual homeowner with a home value of $250,000. PROPERTY TAX COMPUTATION CALCULATION COMPARISON BETWEEN 2017 AND 2018 - Police Pension and Social Security Increase 2017 Market Value 2017 2018 Difference Home $ 250,000.00 EAV $83,333 $88,108 $.02 - Per Day Tax Rate 0.5319% 0.5106% $.58 - Per Month Tax Bill $443 $450 $7 - Annually OPTION #3 –Fully funding Police Pension and Social Security with additional dollars to the General Corporate portion of the levy. Increasing the levy line for the Police Pension Fund obligation, the Social Security employer obligation and the General Corporate line item show a total increase to the Village’s levy of 4.98%. This dollar 10.25.18 VB Meeting 12 increase in conjunction with the increasing EAV could still decrease the rate, lowering it from .5319 to .5256 as shown in the chart below. % Increase/ 2018 REQUESTED TAX LEVY $ Increase/ Decrease - Police Pension, Social 2017 Tax Levy 2018 Estimated Tax Decrease over over prior Security and General Corporate Extensions Levy Request prior year year Corporate $3,070,917 $3,114,917 $44,000 0.00% IMRF $250,000 $250,000 $0 0.00% Social Security $250,000 $395,000 $145,000 58.00% Liability Insurance $250,000 $250,000 $0 0.00% Audit $0 $0 $0 0.00% Cemetery $0 $0 $0 0.00% Police Pension $813,386 $855,198 $41,812 5.14% TOTAL $4,634,303 $4,865,115 $230,812 4.98% Levy Year Rate EAV Dollars Increase 2017 0.5319 $871,310,736 $4,634,303 2018 0.5256 $925,612,066 $4,865,115 $230,812 The chart below shows the impact of option #3 on an individual homeowner with a home value of $250,000. PROPERTY TAX COMPUTATION CALCULATION COMPARISON BETWEEN 2017 AND 2018 - Police Pension, Social Security, and Corporate 2017 Market Value 2017 2018 Difference $ Home 250,000.00 EAV $83,333 $88,108 $.05 - Per Day Tax Rate 0.5319% 0.5256% $1.66 - Per Month Tax Bill $443 $463 $20 - Annually Ultimately, multiple options are available to the Village in establishing the levy. The three options being presented align closest with the Village’s financial policies and strategic goals of practicing sound financial management while being cognizant of the impact on taxpayers. None of the options above would require the Village Board to hold a “Truth in Taxation” hearing. The following schedule will be followed for the 2018 Tax Levy process: December 6, 2018 Public Hearing – 2019 Annual Budget Village Board to approve: a.) 2019 Annual Budget b.) 2018 Property Tax Levy Ordinance c.) 2018 Special Service Area Levy Ordinances d.) 2018 Abatement Ordinances Mayor Sass stated that he would like Option #1 only funding the Police Pension as finances are still tough for residents and the Village increased the water rates in 2018. 10.25.18 VB Meeting 13 Mayor Sass asked if the Village Board had any comments or questions; there were none. Mayor Sass asked which option each Board Member supports. All Board members supported Option #1. This item was for discussion purposes only and no formal Village Board action was required. FISCAL YEAR 2019 BUDGET WORKSHOP NO. 2: a. FY19 Personnel and Staffing, Pension, and Insurance Summary Village Manager David Johnson reviewed Personnel and Staffing, Pension, and Insurance items. There were no questions or comments from the Village Board. b. FY19 Major Capital Revenue Sources and Preliminary Department Capital Requests Village Manager David Johnson reviewed the Major Capital Revenue Sources and Preliminary Department Capital Requests. Trustee Westberg asked if the decline in the Simplified Telecommunications Tax Revenue was due to more people texting and using less phone calls (voice); Director Haley agreed that was the cause of the decline. Trustee Goldman asked for clarification as to why the Capital Funds Major Revenue Sources were down $300,000 through the 3rd Quarter; Director Haley explained that there is a three-month lag in receiving sales tax. Trustee Leopold suggested that after the spring elections, the Village Board should have a workshop to discuss how to find funds and figure out long term plans regarding the MFT Street Improvement Program as it appears that it is falling behind in completion. Mayor Sass suggested taking $300,000 from the Realignment of Kreutzer Road – Phase I Engineering project and putting it towards the 2019 Georgian Place Street Improvement Program so that it can be completed in one year and not two. Trustee Leopold asked for clarification noting the Kreutzer Road west project and asking if the Village received the federal grant prior to the Phase I Engineering being completed. Village Manager Johnson reported that in today’s world, the Phase I Engineering needs to be completed first. It was the consensus of the Village Board to do what was necessary to complete the Georgian Place Street Improvement Program in 2019. Trustee Westberg asked how the sealant work that took place in Wing Pointe a few years ago was holding up; Director Farrell stated that it has done what was expected and noted that the new liquid road product works even better. Village Manager Johnson clarified the Village Board’s direction to move the Realignment of Kreutzer Road – Phase I Engineering project to 2020. Director Farrell spoke about the LED Lighting Program and reported that since 2014, 314 lights have been changed to LED; the Village has received $64,000 in reimbursements and has saved about $8,000 per year. 10.25.18 VB Meeting 14 VILLAGE ATTORNEY’S REPORT: None VILLAGE MANAGER’S REPORT: None VILLAGE PRESIDENT’S REPORT: None UNFINISHED BUSINESS: None NEW BUSINESS: None EXECUTIVE SESSION: None POSSIBLE ACTION ON ANY CLOSED SESSION ITEM: None ADJOURNMENT: There being no further items to discuss, a MOTION was made to adjourn the meeting at 8:29 p.m. MOTION: Trustee Piwko SECOND: Trustee Hoeft The Voice Vote noted all ayes and the motion carried. Respectfully submitted, Barbara Read Recording Secretary 10.25.18 VB Meeting 15