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HomeMy WebLinkAbout08/18/2025 1 COMMITTEE OF THE WHOLE – Meeting Minutes August 18, 2025 The Village Board met as a Committee of the Whole in the Council Chambers of the Village Hall at 8:39 p.m. on Monday, August 18, 2025. In attendance were: PRESENT: Village Board Staff Dan Shapiro, Mayor Kent Street, Village Manager Bob Benton, Trustee Andrew Lichterman, Deputy Village Larry Berg, Trustee Manager/Director Community Development Jennifer Goldstone, Trustee Robert Phillips, Director of PW and Eng. Jesse Greenberg, Trustee Tyler Dickinson, Asst. Dir. of PW and Eng. Elaine Jacoby, Trustee Jessica Sciarretta, Management Analyst Mary Oppenheim, Trustee David Fitzgerald-Sullivan, Comm. Coord. Daniel Van Dusen, Deputy Village Clerk Benjamin Schuster, Village Attorney Public Comment There were no public comments on non-agenda items. Business 1. Discussion of 2026 Capital Improvement Plan Mayor Shapiro reviewed the discussion from the August 13, 2025, Committee of the Whole meeting. He asked Mr. Burk to review the Village’s current outstanding debt obligations. Mr. Burk stated the Village currently has $51 million in outstanding debt. He noted the most recent debt issue in October 2021 resulted in a refunding issue that contributed to some savings as well as issuing $7 million in new debt to fund the FY22 and FY23 Capital Improvement Plan. Mr. Burk noted the 2026 debt service is roughly $4.6 million. That debt service amount begins to decrease in 2028, with a significant decrease to $2.7 million in 2032. Mr. Burk noted the final debt service payment for current debt obligations would occur in 2038. Mr. Burk pointed out the Village is home rule, so there is no statutory limit on the percentage of the property tax bill that can go to a municipality. He noted the Village portion of the property tax bill is 6 percent of the EAV. Mr. Burk stated there are options to reduce the size of the bond issuance to fund capital improvements which include reducing the scope of projects or increasing revenues from new or existing sources (e.g., stormwater utility fee, food and beverage tax, etc.). Trustee Oppenheim asked if the revenue from food and beverage tax goes directly to the infrastructure replacement fund. Mr. Burk stated that is correct and it represents roughly $600,000 in annual revenue. Trustee Greenberg asked about user fees, specifically if there is a more equitable way to charge for services. Mr. Burk pointed out a fee survey is distributed to the Board in the budget binders. Mr. Street pointed out that the Village’s general fund subsidizes garbage fees. Trustee Greenberg stated he would be in favor of pursuing different funding options rather than issuing bonds. Mr. Street noted finding the balance between appropriate 2 investing as future taxpayers will benefit from the investments and paying for services as you go affects the overall impact to the taxpayer. Trustee Oppenheim believes user fees have historically been less dependable for funding capital improvements. Mr. Street stated a capital improvement project is typically worth 25 years of value, and the philosophy of the Board has generally been that future residents should pay for that benefit. Trustee Oppenheim believes that funding method is more equitable. Mr. Burk noted the fund balance in the general fund has been built up and some of those funds can be transferred to the infrastructure fund. However, other competing projects have to be factored in to funding decisions. Mayor Shapiro spoke about other neighboring communities that have issued large amounts of debt to catch up on maintenance projects. Mr. Street noted some neighboring communities have instituted a real estate transfer tax. He pointed out that the Board has resisted instituting that type of tax which would need to be adopted by referendum. Mr. Lichterman reported on neighboring communities and their recent bond issuances for capital improvements with amounts varying between $8-$24 million. Mayor Shapiro asked the Board to consider projects in the 5-year plan that do not need to be prioritized and can be postponed. Trustee Oppenheim pointed out that projects are likely to be more expensive if postponed. She expressed concerns about waiting until things break, are unable to be repaired and have to be replaced. Mayor Shapiro does not want to defer the street rehabilitation program. Trustee Jacoby asked if that program could be halved next year. Mayor Shapiro asked Mr. Phillips about the scoring and rating system for Village infrastructure projects. Mr. Phillips stated the Public Works Department forecasts which projects can be physically completed over the next couple of years. Projects in the outer years of the 5-year plan take time to develop in terms of funding as well as planning. Mr. Phillips noted roadway resurfacing needs to be done on a regular basis or it will be more expensive in the future and can turn into full roadway reconstruction. He pointed out that surface maintenance at the right time extends the lifespan of the roadway. Trustee Oppenheim stated full roadway reconstruction is more of a hassle for residents. Trustee Greenberg suggested the Board use a combination of funding sources to accomplish the capital improvement plan with a budget figure somewhere between the no bond issuance and the $10 million options. He noted the value of getting ahead of projects before catastrophic failure of infrastructure components. Mr. Phillips stated a stormwater utility fee proposal has been discussed in the past and he is willing to present that option to the Board again, if requested. He noted the different measuring systems used by neighboring communities to determine their respective stormwater utility fee rates. Mr. Schuster stated that communities that have implemented a stormwater utility fee have typically used those fees to fund large capital investments in significant stormwater projects. Mr. Street noted the challenges of implementing a stormwater utility fee. Trustee Oppenheim appreciates that staff included an estimation of the tax increase that each bond issuance proposal will generate for the owner of a $500,000 home. Mr. Burk noted the estimated tax increase is $85 per year for the $10 million bond issuance and $135 per year for the $15 million bond issuance. Trustee Oppenheim believes it is important to find an acceptable increase for residents. Mayor Shapiro spoke about the major expenditures included in the $10 million bond issuance and believes it is important to preserve those projects. Mayor Shapiro believes the Village Hall improvements can be postponed and the façade rebate grants could be 3 eliminated. He noted the Village currently has two active TIF districts and funds from those increment accounts could be used for authorized expenditures within the TIF districts, should the Village receive a façade improvement request. He also proposed deferring the Public Works storage building extension. Those deferrals and cuts total roughly $1.6 million. Mr. Street asked staff to comment on the Mayor’s proposal. Mr. Phillips detailed the funding sources for some of the proposed projects. He pointed out $800,000 for the street rehab program in 2026 and $800,000 for the Arbor Vitae Road and Appletree Lane infrastructure project will be funded using Motor Fuel Tax funds. Mr. Phillips noted the $800,000 for improvements along Wilmot Road consists of federal grant money, which is not guaranteed. He stated that if the federal grant money is not received, they will defer the Wilmot Road improvements and reapply for federal funding. Mr. Phillips proposed funding a one-year program. Mayor Shapiro asked the Board how they feel about implementing a one-year plan. Trustee Goldstone pointed out that District 109 will be proposing a referendum in the spring and the timing of approving a two-year capital improvement program ahead of that referendum is an important consideration. Trustee Greenberg asked when the tax levy will be passed and when it will show up on property tax bills. Mr. Burk stated he will examine the dates for the bond issuance and tax levy ordinance as well as when the proposed referendum, if approved, will impact tax bills. Trustee Jacoby asked about the source of funding for the purchase of the U.S. bank building and solar panels for the Water Reclamation Facility. Mr. Burk stated the solar panels will be funded from the General Fund. He noted the bank property funds will come from either bond issues or a loan to the TIF district from the General Fund. Mayor Shapiro asked the Board to consider what amount of tax increase they are comfortable with. Mr. Street asked staff to craft a proposal that results in a $60-$70 increase for the owner of a $500,000 home. Trustee Greenberg suggested finding middle ground between the $10 million bond issuance and the no bond issuance proposals. He would like staff to look at specific projects that could be deferred and have staff provide new details on the modified proposal. Mr. Burk pointed out that there are numerous factors, including estimating future interest rates, that are built into the tax increase calculation which may result in some variance. Mr. Street stated staff will come back to the Board with an updated proposal at a future Committee of the Whole meeting. He noted operating budget proposals will be presented to the Board in the first half of September, and the budget will be finalized in October ahead of a Public Hearing on the final proposed budget in November. He thanked the Board for their direction. Adjournment: There being no further business or discussion, Trustee Berg moved to adjourn the meeting. Trustee Benton seconded the motion. The motion passed by unanimous voice vote. The meeting was adjourned at 9:37 p.m. Respectfully submitted, Daniel Van Dusen Deputy Village Clerk