HomeMy WebLinkAbout06/21/2012 FC MinutesFINANCE COMMISSION
Minutes of the Meeting
June 21, 2012
1 st Floor Community Center
Village Hall
I. Call to Order
The meeting was called to order at 7:10 p.m. Those present included Chairman Vince
Grochocinski and Commissioners Wayne Gardner, Tom Pekras and Ann Smilanic.
Commissioners Pam Bazan, John Kellerhals, and Don Ocwieja were absent. Also present
was Finance Director David Erb, Public Works Director Sean Dorsey and Deputy
Director Jason Lieb. Village Manager Mike Janonis Arrived at 7:25 p.m.
II. Approval of Minutes — May 23, 2012
Approval of minutes was deferred until the next meeting scheduled for June 28, 2012.
III. Citizens to be Heard
There were no citizens to be heard.
IV. Old Business
There was no old business.
V. New Business
Director Dorsey presented the Comprehensive Flood Study Report commission by the
Village Board. The flood occurred in July 2010 and was a 400 year event (a.25% chance
of happening in any year) which overwhelmed much of the Village's sewer systems. The
Report by Burns& McDonnell, consulting engineers, was presented to the Village Board
April 10, 2012.
Many statistics regarding the flooding were presented. The study recommended $23.9
million of improvements to Village sewers and private residences. The major public
improvement was to the sewers in the Isabella Street area costing an estimated $12.5
million. One half of this is clear water related and the other half is sanitary sewer related.
The private property improvements involve the installation of overhead sewers and the
disconnecting of the foundation footing which channel clear rainwater to the sewer
system. The later may require the installation of sump pumps. The diverting of rain
water from the sanitation sewers is required by sewage treatment authorities to reduce the
amount of water needing treatment to protect the drinking water supplies. The cost of the
private improvements is estimated at $9.5 million (Almost 400 homes at $25,000 each)
Dave Erb then presented the funds and funding sources projected to be available and /or
need for the clear water (rain water) improvements. The total was $17.2 million which is
one half of Isabella and the private improvements. Consideration of the Villages
contribution to the private sector improvements, if any, is still to be determined.
Considering the home rule sales taxes projected to be available and the current payments
on prior flood improvements debt, the funding for the newly projected debt service would
be short of that required by an amount decreasing each year from $800,000 to zero by the
year 2020. There is also the other half of the Isabella improvements to be funded from
the water fund. In addition to the flood issues the following funding demands were also
discussed:
1. The street resurfacing projects are a year behind which would cost $1.4 million to
catch up to normal resurfacing needs.
2. The Emerald Ash Borer cost of removing and replacing the 4,400 trees is estimated at
$2 to $3 million.
3. The Water Meter reading improvements for business and homes is estimated to cost
$2.1 to $2.6 million.
4. There is also a funding requirement for the Randhurst Redevelopment Agreement.
This is not a cost to the Village since the funding source is limited to the sales tax
revenue incremental amount. However, the desire to permanently fund the agreement
will put a burden on the Village's borrowing capacity.
The total need for funding sources considering these pending needs has been referred to
the Finance Commission for their input and ideas. A special meeting to consider these
needs will be scheduled in the near future.
VI. Other Business
No was no other business.
VII. Chairman's Report
There was nothing to report.
VIII. Finance Director's Report
There was nothing to report.
IX. Next Meeting: June 28, 3012
The next meeting will be Thursday, June 28, 2012, 6:30 p.m. at Village Hall, 1 st Floor
Community Center.
X. Adjournment
Commissioner Tom Pekras motioned to adjourn. Commissioner Wayne Gardner
seconded the motion. The meeting was adjourned at 9:48 p.m.
Respectfully Submitted,
Vince Grochocinski
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