Loading...
HomeMy WebLinkAbout08/26/1996 FC MinutesFINANCE CONMMSION Minutes of the Meeting August 29, 1996 Call to Order The meeting was called to order at 7:00 p.m. Those present included Chairman Richard Bachhuber, John Engel, Joseph Etchingham, Newt Hallman, John Korn, Tom Pekras, and Ann Smilanic. Also present were Finance Director Brian Caputo, Assistant Finance Director Carol Widmer, Public Works Director Glen Andler, Deputy Public Works Director Sean Dorsey, Village Engineer Jeff Wulbecker, Project Engineer Fred Tennyson, and Street Superintendent Paul Bures. Commission members Jim Morrison and Vince Grochocinski were absent. II Approval of Minutes The minutes of the July 25, 1996 meeting were approved as presented. III Discussion of the Street Reconstruction Program Public Works Director Glen Andler and his staff, Deputy Public Works Director Sean Dorsey, Street Superintendent Paul Bures, Village Engineer Jeff Wulbecker and Project Engineer Fred Tennyson discussed the condition of the Village's streets. Mr. Andler circulated a 20 -year pavement rehabilitation history of Village streets. The report listed the years 1977-78 through 1996, the number of miles of streets resurfaced and reconstructed, the total dollars spent on each procedure and the source of the funds. The report confirmed the fact that, in spite of the monies spent on the streets over the past 20 years, the Village is falling behind in the number of miles in need of resurfacing and reconstruction. Jeff Wulbecker and Fred Tennyson presented information on the Village's pavement evaluation testing. project which was performed by an outside consultant, Infrastructure Management Services. Mr. Tennyson explained how pavement is actually tested, the machine used for testing and the criteria used to determine whether a street should be reconstructed versus resurfaced. Members of the Finance Commission discussed the fact that some subdivisions, particularly in the northeast part of the Village, had many streets in need of costly reconstruction. They were advised that some areas had been built under county road specifications and the roads did not meet Village standards when they were annexed. Commission members expressed concern over the fact that all residents are now being asked to pay for substandard roads. They felt the issue should have been addressed at the time of the annexations. Mr. Wulbecker defined a 20 -year street life in response to a question from Commission members. Mr. Wulbecker stated that if a street receives crack filling and sealing on a regular basis then it would be at least 20 years before a street would require resurfacing. Mr. Wulbecker also stated that if all the streets identified as candidates for reconstruction and resurfacing are completed in a timely manner, the Village will never have to reconstruct a street again provided that proper and regular maintenance is done in the future. Jeff Wulbecker reviewed three possible funding scenarios suggested by Engineering staff and how effective each would be in addressing the backlog of streets needing reconstruction and resurfacing over a ten year period. Under Option 1 in which funding remains at the current level of $1.3 million each year in a 10 -year period, streets in need of resurfacing will increase from 32.7 miles to 37 miles and those requiring reconstruction will decrease from 12 to 11 miles. If that option is followed, in the year 2006 it is estimated that the total cost to repair the backlog of streets would be in excess of $24 million. Under Option 2 in addition to the planned $1.3 million to be spent each of the next 10 years an additional $2.5 million would be available in the years 1997 and in 2001. The additional $5 million would be used toward reconstruction of streets and in the year 2006 streets requiring resurfacing would still increase from 32.7 miles to 37 miles but those requiring reconstruction would decrease from 12 miles to 6.1 miles. A total of $17.9 million would be required to repair the resulting backlog. Option 3 would require various amounts of new monies in each of the next 10 years in order to eliminate the 12 mile backlog of reconstruction in the next three years and the 32.7 miles of resurfacing in the fourth thru eighth years as well as the continuation of routine maintenance over 8 years. The amount of new money needed would vary from a high of $3.7 million in 1999 to $470,000 in the year 2006 with annual amounts varying depending on the work scheduled each year. Under Option 3, there would not be a backlog of streets to be repaired at the end of the period. The members of the Finance Commission discussed the options presented to them and were unanimous in the conclusion that the Village needs to supply the resources to bring Village roads up to a satisfactory level and do so as soon as possible. They support Option 3 as presented by the Engineering Division and asked that the Finance Director provide some funding options for the Commission to discuss at the meeting in September. IV Finance Director's Report Comprehensive Annual Rog - Mr. Caputo advised the members of the Finance Commission that the Village received an unqualified opinion from Friedman Eisenstein Raemer and Schwartz (FERS), the Village auditors, for the eight-month period May 1, 1995 - December 31, 1995. The General Fund ended the period with a $30,000 deficit as opposed to the projected deficit of $400,000. The other funds of the Village ended the year in excellent financial shape. VI Adjournment The meeting was adjourned at 9:50 p.m. The next meeting will be held on Thursday, Septem- ber 26, 1996 Respectfully submitted Carol L. Widmer, Assistant Finance Director CLW/sm