HomeMy WebLinkAboutMinutes - 8/13/2001 - Finance and Personnel Committee FINANCE AND PERSONNEL COMMITTEE MEETING
Monday, August 13,2001
Alderman's Conference Room, 6:30 p.m.
�. In Attendance: Committee Members: Alderman Bolger, Alderman Low, Alderman Murgatroyd.
Also in Attendance: Mayor Althoff, Alderman Wimmer, City Administrator Lobaito, Assistant
Administrator Ma.xeiner, City Treasurer Welter and City Clerk Jones.
Chairman Alderman Murgatroyd called the meeting to order at 6:32 p.m.
Financing for Edgebrook Drainage Project
Chairman Murgatroyd requested Assistant Administrator Maxeiner provide an overview of the project.
Assistant Administrator Maxeiner reported on April 18, 2001, Council awarded the bid to Thelen Sand
and Gravel to make approximately $865,000 worth of improvements to the Edgebrook drainage ditch.
Improvements are well underway, with a projected cost totaling approxima.tely $1,400.000. Assistant
Administrator Ma�ceiner further stated Council has not determined how the project will be funded.
Assistant Administrator Maxeiner stated, in early Apri12001 Staff brought a recommendation to Council
to fund 50% of the project through a Special Service Area with the remainder to be paid from general
operating revenues. Assistant Administrator M�einer advised a Special Service Area is a fmancing
mechanism whereby a property t� is levied upon the owners of property within a defined service area.
Special Service Areas are used primarily in instances where it is easily identified who will benefit
directly from the public improvement,or who is contributing to the problem or issue. In the instance of
the Edgebrook Drainage Project, all properties within the drainage basin are cantributing to the problem.
The Special Service Area as a financing mecha.nism was identified as a potential funding source in the
Five Year Capital Improvement Plan, which was approved by the Council in early 2001. Council
� decided further consideration of the Special Service Area was necessary prior to pursuing it as a
fmancing option for this project
Assistant Administrator Maxeiner noted Staff is seeking direction from Council on how to finance this
project. Three options were suggested:
• Pursue the Special Service Area to fund 50%of the project cost
- rejected by Council in Apri12001
• Issue bonds for the work with debt service repaid from general revenues
- would require commitment of general revenues on an annual basis to repay the debt as
follows:
Maturit, Level Annual Debt Service Re uired
Ten Year Maturity $130,000 to $150,000
Fifteen Year Maturity $100,000 to $110,000
Twenty Year Maturity $ 80,000 to $ 85,000
� Utilize unobligated reserves to fund the project
- would deplete reserves to levels below the current Council target of 33% of the operating
budget.
Discussion ensued. Alderman Bolger opined, in view of the fact close to $1,000,000 is being spent in
Lakeland Park, unexpected expense may be incurred in Cooney Heights and Alderman
Glab has mentioned problems in Whispering Oaks, he feels the City should bear the responsibility not
�, burden the citizens. Alderman Bolger noted he had no objection to a Special Service Area, however he
felt it should be applied equitably. In response to Alderman Bolger's
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Finance and Personnel Committee
8/13/O1
�. inquiry, Cha.irman Murgatroyd stated he considered a Special Service Area appropriate for Lakeland
Park. He opined if residents enjoy the benefit of a project, together with an economic benefit, beazing a
portion of the cost of a project was not unreasonable.
Mayor Althoff noted following the original discussion regarding the Special Service Area for the
Edgebrook Drainage Project, no action was taken by Council. Mayor Althoff suggested the Committee
direct Staff to pursue the establishment of a Special Service Area to fund 50% of Edgewood Drainage
Project. Chairman Alderman Murgatroyd concurred with Mayor Althoff noting the Special Service
Area does not require definition, at this point, only whether it is a course of action Staff should pursue.
He stated impiementation could take several months.
City Administrator Lobaito stated Staff has not explored defining the Special Service Area. He noted
authority must be obtained from the County to implement a Special S�rvice Area which includes
properties outside of the corporate limits. In the past the County has been guarded about permitting any
unilateral establishment of a t�district.
Chairman Murgatroyd suggested the most viable option might be bonds. The question is whether or not
to establish a Special Service Area to share in the cost. Discussion ensued regarding the length of time
required to clearly define the parameters of a Special Service Area to fund the Edgebrook Drainage
Project. It was the consensus of the Committee to direct Staff to move forward and obtain additional
informa.tion regarding financing the Edgebrook Drainage Project with bonds.
�-- New Business
City Administrator Lobaito reported the City was successful last year in obtaining grant funds from
State Representative Jack Franks, Senator Dick Klemm and a number of other entities. Most of the
grants received were successfully secured through member initiative or Illinois Tomorrow monies. A
grant from Representative Franks in the amount of$128,000 was designated for the purchase of laptop
computers for the Police Department. Senator Klemm's grant provided for the purchase of almost
identical equipment. T'herefore, Police Chief Kostecki, with State Representative Frank's permission,
and in conjunction with the grant administrator for Department of Commerce and Community Affairs,
modified the grant to arrange for the purchase of other capital equipment. To date, none of the $128,000
grant monies have been released from the Governor's ofFice, although $72,467.40 has been expended to
date.
City Administrator Lobaito noted time constraints involved in the purchase of the equipment. Staff is
seeking direction and authorization to proceed with the purchase of the necessary equipment, with the
understanding the grant monies may not be received. Discussion ensued.
Motion by Low, seconded by Bolger, to recommend to the City Council that Staff be directed to proceed
with the purchase of the balance of the necessary equipment for the Police Department. All ayes.
Motion carried.
Motion by Bolger, seconded by Low,to adjourn the meeting at 7:22 p.m.
All Ayes. Motion carried.
� Resp ctfully se hmitted,
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Steven C. Murg�itroyd, C airm n