Lake County Gazette

Village of Wauconda Village Board met April 7.

Here is the minutes provided by the Board:

1. Call To Order

Mayor Knight called the Special Village Board Meeting to order in the Village Hall at 8:30 am.

2. Pledge Of Allegiance

The Pledge of Allegiance was led by Mayor Knight.

3. Roll Call

Upon roll call by Clerk Falk-Novak, the following Trustees were present:

Trustees Starkey, Arnswald, Howe, Morino, Schlick.

Absent: Trustee Black

Quorum Present-

Also present: Kevin Timony (Village Administrator), Brad Fink (Director of Public Works), Tom Lyons (Finance Director), Chris Miller (Director of Building, Planning, and Zoning), Police Chief Wermes

4. Public Comment

Maria Peterson:

Maria introduced herself to the Board and stated she will be running for Lake County Board (District 17 – Democratic Candidate). She asked that party affiliation is put aside and asked that it be recognized who has been present as her opponent has not. She stated her opponent wants a seat on the Lake County Board and really doesn’t do his job. She asked that it be recognized that she is willing to work hard and will be present. She stated it’s 8:00 on a Saturday morning and is happy to be here listening to what the issues are in Wauconda and the surrounding areas as what happens in Wauconda also affects North Barrington, Lake Barrington, Tower Lakes, Island Lake and Port Barrington as well as a small portion of Cary and Hawthorn Woods.

5. Approval Of Agenda

(Last Ordinance No. was 2018-O-07) (Last Resolution No. was 2018-R-03)

Motion to Approve the Agenda made by Trustee Morino, second Trustee Schlick.

Ayes 5 Nays 0

Motion Declared Carried

6. Motion To Approve Consideration Of Consent Agenda By Omnibus Vote

Motion to approve consideration of Consent Agenda by Omnibus Vote made by Trustee Schlick, second Trustee Howe.

Ayes 5 Nays 0

Motion Declared Carried

7. Consent Agenda

A. Approval of the Bills for Payment from March 10, 2018 through March 23, 2018 in the Amount of $239,540.72

B. Minutes of the March 20, 2018 Regular Village Board Meeting

8. Motion To Approve Items A Through B On The Consent Agenda

Motion to Approve Items A through B on the Consent Agenda made by Trustee Howe, second Trustee Arnswald.

Ayes 5 Nays 0

Motion Declared Carried

9. New Business

A. (Action) An Ordinance Authorizing the Purchase of Abandoned and Unsafe Property Located at 417 Grand Boulevard, Wauconda, Illinois. (Ordinance No. 2018-O-08)

Kevin Timony:

This was previously discussed, in closed session, of the acquisition of this property. Rudy has been working with the property owner in scheduling a closing which will take place on Monday. This ordinance will authorize himself and Rudy to execute closing documentation. Trustee Starkey asked if we had a company that we are already working with for demolition of this property? Chris responded it would be the same company that handled the 403 Clearview demolition and they quoted the same price. Trustee Starkey stated she was approached by a resident who wanted to know if they could place a bid on this demolition contract and Chris responded yes.

Motion to approve Ordinance Authorizing the Purchase of Abandoned and Unsafe Property Located at 417 Grand Boulevard, Wauconda, Illinois made by Trustee Arnswald, second Trustee Starkey.

Ayes 5 Nays 0

Motion Declared Carried

B. Presentation of DRAFT FY 2018/19 Budget for Board Consideration.

Tom Lyons (Finance Director) and Kevin Timony (Village Administrator) presented the Draft FY 2018/19 Budget.

Highlights of the presentation:

Budget was rolled up into five different funds down from nine in FY17/18

• General Fund

• Waterworks & Sewerage Fund

• Tif No. 1 Fund

• Motor Fuel Tax Fund

• Debt Services Fund

The budget was prepared using a basis consistent with GAAP (Generally Accepted Accounting Principles). The prior budget was presented using Cash Based Accounting and GAAP. The biggest benefit of utilizing GAAP, it allows for financial transactions to be reported consistently from year to year. It is also the same reporting base that is used for the Comprehensive Annual Financial Report as well as the annual audit.

General Fund-

Revenues are ahead of expenditures just by a little under $7000.00.

It was noted that there will be a one-time revenue that will be received from School District #118 for a School Resource Officer. When going through the budget process, it was uncovered that this service was not invoiced for the past couple of years. The Village has reached out to the district and a one-time payment will be made to the Village for past back payments. Moving forward this will be budgeted and invoicing structure has been implemented. Without this one-time revenue, we are actually showing about $143,000 where revenues are below expenses. Although a balanced budget is being presented, without this one-time revenue, it would actually be in the red. This was referred to throughout the presentation.

The Village has an operating reserve policy which is a minimum of 25% of previous twelve months operating expenses and the Village is currently at 30.5%.

Total revenues for the Village are up just under 1%.

General Fund Revenues/Other Financing Source: $9,259.150:

• Property Tax 40.1%

• State Shared Revenues 39.3%

• Utility Taxes 7.6%

• License, Permits & Fees 3.4%

• Fines & Forfeitures 3.1%

• Charges for Services 2.7%

• Donations & Grants 0.3%

• Reimbursements 0.2%

• Interest 0.2%

• Other 1.0%

• Sale of Fixed Assets 0.4%

• Transfer from W/S Fund 1.7%

Village Stress Test: Our state shared revenues make up about 40% of our operating revenues. The Village is 100% dependent on these revenues. Any type of decline of these revenues will affect either our capital improvement program or our ability to fund our operating expenses. These revenues are outside of our control. They are subject to the economy, state government as well as the utility taxes which are subject to the weather. There are revenues that we are relying on that we have no control over. The lower we make our dependencies on these revenues, the better position the Village will be in. Tests were conducted should the state income tax be reduced. Test #1: If there were a 25% reduction in receipts ($898,320 received) = $292,678 shortfall. Test #2: If there were a 50% reduction in receipts ($599,280 received) = $592,318 shortfall.

Total (draft) General Fund expenditures are down 4.9% ($474,966). General Fund expenditures without capital outlay are down $55,187 (0.6%). General Fund expenditures/other financing uses: $9,252,188:

• Personnel 68.00%

• Contractual Services 16.50%

• Supplies & Materials 2.80%

• Repair & Maintenance 2.00%

• Other 2.60%

• Debt Service 0.00%

• Capital Outlay 8.00%

• Transfers Out 0.04%

General Fund Expenditures by Department:

• Police 61.00%

• PW – Streets 20.00%

• EMA 1.00%

• Risk Management 4.00%

• Lake Management 1.00%

• Administration 7.00%

• Building and Zoning 5.00%

68% for personnel and 61% for police are in line with other municipalities.

Department Highlights-

Administration expenditures, excluding capital outlay, are down 29.1% ($273,596).

Proposed Capital & Non-Capital Projects:

• GovHR Classification & Compensation Study - $15,500

• Village Board iPads = $3,000

• Electronic Records Retention Software = $20,000

Building, Zoning & Economic Development expenditures, excluding capital outlay, are down 0.5% ($2,402).

Police expenditures, excluding capital outlay, are up 3.6% ($192,832):

• Salary/benefit increases for patrol and sergeants per collective bargaining agreements

• Increase in Village police pension contribution ($75,339)

All other non-personnel costs are down $4,500.00.

Proposed Capital Projects:

• Squad purchases (4) = $144,000

• eCitation Software = $34,000

Public Works – Streets expenditures, excluding capital outlay, are down 0.8% ($10,891).

Proposed Capital Projects:

• Wood Chipper Replacement = $60,000

• ROW Lawnmower Attachment = $45,000

• Street sweeper Replacement = $260,000 (Alternative options currently being pursued)

• Truck #14 Replacement = $45,000

• Thermoplastic Striping = $30,000

• Storm Sewer Rehab = $100,000

Emergency Management Agency expenditures are up by $15,115 to accommodate the increased annual stipend for the EMA Director Position.

Lake Management expenditures are up $30,569:

• The spread of applicable employee salary/benefits to operating area

• Cost sharing of IT Services, Financial Services, and Human Resources contract (total of $11,658)

Water/Sewer Fund-

Revenues:

• Operating: 6.5% increase (projected including the 4% annual scheduled rate increase)

• Non-Operating: 37% increase (Lake Michigan Water Bonds)

Expenses:

• 18/19 Budget includes $5,262,000 for estimated CLCJAWA payments

• Water/Sewer operating expenses without CLCJAWA payment are down $281,318 (5%)

Capital Asset Purchases:

• Lake Michigan Water Phases 3A & 3B = $3,546,425 (funded through IEPA Loan Proceeds)

Principal Payments on Outstanding Debit: $1,452,695

Monthly resident cost for bringing in Lake Michigan water:

• A slide was provided that was from the original presentation on 9/13/2012 which reflected an average monthly cost per family (based on a family of four living in a $200,000 home will gradually increase billing by $43

• This was estimated back in 2012 and when yearly inflation is factored in, this projected monthly additional cost will be $47.91

• Three options were discussed as to the water billing to the residents to accommodate this increase which are:

o Option 1: Continue with the regularly scheduled 4% annual increase which will not cover the cost

o Option 2: 31% increase in FY19 and FY20 which will just keep the Village in the black.

o Option 3: 65% increase FY20 (one time only) when Lake Michigan water starts

• It was discussed once Lake Michigan water starts, costs to homeowners will reduce due to hard water (ie salt purchase)

• Current water operating expenses for the Village will also be impacted/reduced as a result of Lake Michigan water

TIF No. 1 Fund-

Revenues:

• Conservative estimate of new increment in district from rise in EAV/property taxes

Expenditures:

• $111,250 reserved as contingency

Motor Fuel Tax Fund-

Revenues:

• Based on IML forecast of $25.55 per capita plus $20,000 growth factor contribution

Expenditures:

• Includes $174,900 in debt service payments plus $45,000 for road salt & maintenance expenses

Debt Service Fund-

Revenues:

• Directly sourced by property taxes levied to pay associated bond obligations.

Expenditures:

• Covers debt service for 2015 GO Refunding Bond issue (2008 Street Bonds) for previous road work.

Police Pension Trust Fund-

Contributions (Employer) for FY19 is $994,801 which is exactly what the Village levied.

10. Adjournment

Motion to adjourn made by Trustee Starkey, second Trustee Morino.

Ayes 5 Nays 0

Motion Declared Carried

Adjourn Time 9:29 am

http://wauconda-il.gov/AgendaCenter/ViewFile/Minutes/_04072018-423