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HomeMy WebLinkAbout07/24/2001 COW minutes MINUTES COMMITTEE OF THE WHOLE JULY 24, 2001 I. CALL TO ORDER The meeting was called to order at 7:34 p.m. by Mayor Gerald Farley. Present at the meeting were: Trustees Timothy Comoran, Paul Hoefert, Richard Lohrstorfer, Michaele Skowron, Irvana Wilks and Michael Zadel. Staff members present included Village Manager Michael Janonis, Assistant Village Manager David Strahl, Finance Director Doug EIIsworth, Community Development Director William Cooney and Deputy Public Community Development Director Michael Blue. II. APPROVAL OF MINUTES Approval of Minutes from July 10, 2001. Motion made by Trustee Hoefert and Seconded by Trustee Corcoran to approve the Minutes. Minutes were approved. III. CITIZENS TO BE HEARD John Korn, 301 North William, spoke. He stated that he has concerns about the proliferation of motorized scooters throughout the community. The preliminary research that he has undertaken shows that these are not regulated by the State and the operators typically ignore traffic control signs and operate in the street and pose a significant danger to themselves and other vehicles. IV. VILLAGE HALL DISCUSSION Proiect Financin.q Options Mayor Farley introduced the topic by stating that it is important to consider professional design assistance to determine what the space allocation needs are for such a project and the discussion this evening will focus on financing, the Referendum question and design team designation. Village Manager Janonis stated that this is the point where the Village Hall Ad Hoc Committee report left off with the Village Board acceptance of the report last summer. He stated that it is necessary to obtain assistance to get the most accurate budget numbers for moving forward with this project if it is the desire of the Board to move forward. Part of the process will include applying a design to the preliminary budget to determine whether the anticipated budget is adequate. He also suggested that the Village Board focus on the financing approach, not on the actual amount necessarily at this point since the numbers are all basic estimates at this time. Finance Director EIIsworth provided an overview of the current debt capacity on the Police and Fire Building and the Public Works Building. The two Bond issues will be paid off in fiscal year 2007. He provided a review of the estimated debt necessary for the Village Hall/Community Center project. He highlighted the anticipate interest and process costs including the investment proceeds. He estimated the debt service annually at $1.09 million and provided a funding scenario whereby additional revenue would be obtained directly from the Property Tax Levy in addition to the annual General Levy. Village staff reviewed various other funding options including spreading out a Property Tax Levy increase over several years and the utilization of existing funds from other parts of the Budget including the Road Fund. He stated his projections assume an annual Property Tax increase of 3.5% for general expenditures. He also outlined an option utilizing Fund balance to reduce the Property Tax Levy increase over several years whereby the excess funds would be utilized to reduce the Levy overall. Assuming the additional funds are transferred from contingency funds in the General Fund and the Property Tax Levy increase is spread over three to four years, the average taxpayer would incur a $4.00 increase in their Property Tax for this project. Such a scenario would retain the Fund balance at approximately 25% which has been a previously-stated policy. Staff would recommend Option C or D whereby the Property Tax Levy increase is spread over several years and there is a utilization of contingency funds from the General Fund. Village Manager Janonis stated that even though debt capacity will be available in 2007, it would be very difficult to wait because of the need to complete downtown redevelopment prior to the expiration of the TIF District and the opportunity to put the Village Hall property back on the tax roles before the end of the TIF. He also stated that construction costs will continue to rise and will have a substantial impact on the project if it is held until debt becomes available. Finance Director EIIsworth also stated that with the upcoming Budget for 2002, there will be additional pressure put on the Levy to retain a 3-1/2% increase due to preliminary revenue estimates. He also highlighted the fact that the Village has not utilized the reassessment gain to obtain additional funds and the Levy amount has been based on the actual dollar need of the Village. General comments from Village Board members included the following items: Several comments were made regarding the need to invest in the downtown. There was also a comment regarding the benefits related to conservative budgeting allowing the Village Board to even consider transferring contingency funds from the General Fund to assist in funding this project. There were several comments regarding the option whereby a transfer of contingency money from the General Fund was utilized to minimize the increase in the Property Tax Levy and spread the Levy increase over several years. Consensus of the Village Board was to consider ~ Option D whereby approximately $1.7 million would be transferred from the General Fund contingency fund and approximately $2 million would be transferred from the Street Improvement Fund surplus and approximately 1% would be added to the Property Tax Levy for years 2002 through 2005. Referendum Discussion Mayor Farley stated that according to the State Statutes, the Village Board is not obligated to make a final determination regarding whether to put a Referendum question on the March 2002 ballot regarding the Village Hall/Community Center until December 2001. Therefore, the Village Board could wait until there are better cost figures based on the professional design services that are under consideration. Village Manager Janonis stated the Village is Home Rule and is not required to go to Referendum but he stated it has been an unwritten policy to go to Referendum for approval for the construction of public buildings. He stated in isolation, the Village Hall question may tend to be ripe for Referendum but with the timing situation and the need for completion of the downtown, it may be worthwhile to consider an alternative approach. He stated there needs to be a final decision by the Village Board by December 17, 2001 in order to get on the March 2002 ballot. John Korn, 30'1 North William, Chairman of the Finance Commission, spoke. He stated that the Commission had recommended last year that the Village Board not go to Referendum for this project. Part of the motivation for this recommendation is that any process regarding consideration for the Village Hall/Community Center would encourage public input and the time left on the TIF is essential for this project. He also stated that previous large capital expenses were done without Referendum including the Road Program and the Flood Control Program. Bill Lynch, 207 South Louis, spoke. He stated that as a taxpayer, he would like to have a say regarding the senior activities in any new building. He would also prefer a Referendum in order to consider any type of design. Trustee Corcoran stated that he had originally supported a Referendum for public building decisions, however, the Village Board has made tough decisions in the past regarding significant expenditures and stated it is necessary to move the project forward and there will be plenty of opportunity for public decision regarding the facility. 3 Trustee Zadel stated that he believes there will be plenty of opportunity for public input regarding the structure and if there is a good financial plan, there is no need to consider a Referendum. Trustee Wilks stated that she feels the question should be put to the voters just as previous questions have been and feels this decision is different than other decisions regarding significant expenditures where no Referendum was considered. Trustee Lohrstorfer stated the Village has committed itself to downtown redevelopment and considers this project a significant component of the downtown redevelopment effort. He stated if this would have been the first downtown project, he would support a Referendum question, but since it is the last piece of the puzzle, he feels it is not necessary. Trustee Hoefert stated he is concerned about moving away from the Referendum philosophy regarding public building issues. He stated he would support a Referendum for this project. Leo Floros, 111 North Emerson, spoke. He would urge the Village Board to move forward without a Referendum. He is concerned about asking for a Referendum at this stage of the project. He also suggested that the Mount Prospect Public Library project be completed without a Referendum also. Jeff Bruner, 220 South Hatlen, spoke. He stated he likes the way things are moving in the downtown and feels that going to a Referendum would significantly hamper, if not stop, the progress that has been made in the downtown. General comments from the Village Board members included the following items; There was a question regarding whether the Referendum question would be brought up in a formal vote before the Village Board. It was also stated that there would be significant cost issues if a Referendum question delayed the project. Trustee Skowron stated that the Village Board's position has remained virtually the same as a year ago regarding the Referendum question. She stated that she is comfortable with the decision of not going to a Referendum. Mayor Farley stated it is time to make a decision now and if a question is asked utilizing a Referendum, regardless of the outcome, it should be followed. Consensus of the Village Board was not to consider a Referendum at this time regarding the Village Hall/Community Center project based on a straw poll of 5-2. Desitin Team Desi.qnation Assistant Village Manager David Strahl provided a general overview of the three firms that were interviewed by the Village Board on July 21. He also provided information regarding the projected costs for the services of each firm. General comments from the Village Board members included the following items: Several Trustees stated that they were pleased with the three teams that were interviewed and feel that any of the three ara capable of completing this project. There were also comments regarding the need to participate in the process to ensure that all components are considered. The process that had been laid out by staff whereby an architect and a construction manager were involved from the beginning was endorsed as the most beneficial from the Village's standpoint. Village Manager Janonis stated there would be public workshops whereby the public would be invited to provide their input. Consensus of the Village Board was to enter into a contract for services with DLK and WB Olson for architectural and construction management services for the Village Hall/Community Center project. V. VILLAGE MANAGER'S REPORT Village Manager Janonis reminded everyone one of the upcoming Mid-Summer Block Party scheduled for the downtown at 4:00 p.m. to 9:00 p.m. on July 28. VI. ANY OTHER BUSINESS Trustee Wilks thanked the individuals in the audience for coming to participate as citizens to this very important discussion regarding the Village Hall. She also stated that the Village needs to consider an Ordinance to change from its current 7:30 p.m. start time to the proposed 7:00 p.m. start time for upcoming meetings. VII. ADJOURNMENT Since there was no further business, the meeting was adjourned at 9:34 p.m. Respectfully submitted, /'/'7 DAVID STRAHL DS/rcc Assistant Village Manager H:\GEN\Cow\Minutes\072401 COW Minutes.doc