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HomeMy WebLinkAboutMinutes - 8/4/1998 - Finance and Personnel Committee Finance Committee Meeting Minutes � August 4, 1998 Page Three In response to committee inquiry, Mr. Warren noted 51 % of the property owners and electors can object to the creation of this special service area. In response to Alderman Glab's request, City Administrator Lobaito provided additional clarification of Gary Lang's obligation as outlined in the Second Amendment to the Annexation Agreement dated July 19, 1989. A lengthy discussion ensued as to include or exclude the Gary Lang property within the designated special services area. Motion by McClatchey, seconded by Murgatroyd, to recommend to full council the approval of the submitted designated area map as presented by staff at the August 4, 1998 Finance Committee Meeting as the special service area for the US Route 31 and Shamrock Lane intersection lane improvements and traffic signal installation project. Voting Aye: McClatchey, Murgatroyd Voting Nay: Baird Motion carried. � PUBLIC BENEFIT AMOUNT City Administrator Lobaito stated the estimated cost of the US Route 31 and Shamrock Lane intersection lane improvements and traffic light installation project is approximately $550,000. The cost of the engineering which shall be paid by the City of McHenry is 566,802 for a total project cost of approximately 5361,000. The State of Illinois has committed $150,000 to the project as well. Mayor Cuda suggested a 50% public improvement and attributing the $150,000 portion to the special service area. The total amount assessed the special service area would then be 5617,000. Total project $625,000 50% public benefit 5312,500 5150,000 State portion (50%) � 75,000) Total assessment 5237,500 Finance Chairman Alderman Murgatroyd stated the $60,000 anticipated from Gary Lang and the State of Illinois' portion equal approximately 5210,000. He requested � further discussion as to the public benefit portion of this project as well as suggestions regarding the distribution of the 5210,000. He requested the committee consider applying the complete $210,000 to the city's portion of the project or sharing the 5210,000 equally between the City of McHenry and the Special Service Area. Finance Committee Meeting Minutes August 4, 1998 � Page Four Alderman Baird supported Mayor Cuda's recommendation regarding the establishment of the cost to the special service area, however he suggested attributing both the State of Illinois' portion and Gary Lang's portion to the Special Service area. Total project 5625,000 50% public benefit 5312,000 State portion (50%) ( 75,000) Lang portion (50%) ( 60,0001 Total assessment 5207,500 Mr. Warren reminded the committee although there was a monetary value to Lang monies paid "upfront" the City of McHenry could obtain a significant benefit from monies paid over time. He also noted taxes could be abated to facilitate time payments. In response, Chairman Alderman Murgatroyd noted financing options could be reviewed in time, at council's discretion, the committee currently needed to develop a recommendation regarding the public benefit amount. Further � discussion ensued regarding the public benefit percentage. In response to committee inquiry City Administrator Lobaito noted the 1998-99 budget reflected a $250,000 general fund expenditure for this project. Alderman McClatchey supported Mayor Cuda and Alderman Baird's position to allocate equally the State and Lang funds of 5210,000 between the City of McHenry and the Special Service Area property owners. Total project 5625,000 State funds (150,000) Lang funds 30 000 Estimated total project cost minus State and Lang contribution 5415,000 Special Service assessment 5207,500 Some discussion followed regarding the estimated project cost to the City of McHenry was 540,000 less than the 1998-99 budgetted amount. Chairman Alderman Murgatroyd open the floor to public comment. � Donald Long, President of the Irish Prairie Homeowners Association commended Mayor Cuda and Alderman Baird for honoring their previous commitment to the Irish Prairie homeowners recommending the equitable distribution of all monies contributed to this specific project between the city and the special service area property owners. Irish Prairie Homeowners Secretary Marie Spade concurred. Finance Committee Meeting Minutes August 4, 1998 � Page Five Irish Prairie Homeowners Treasurer, Chris Johnson, stated her reservations as the Irish Prairie Homeowners recently approved a special assessment for property improvements. Chairman Alderman Murgatroyd noted if the project does not move forward thi:� year the S 150,000 State portion is unavailable. Alderman Glab recommended the Irish Prairie Homeowners Association review the assessed values of the Irish Prairie condominiums versus the Irish Prairie apartment units. It was the concensus of the committee to recommend to full council the equitable sharing of the State of Illinois monies and the Gary Lang contribution between the City of McHenry and the Special Service Area property owners with a 50% public benefit percentage. In response to committee inquiry, Mr. Warren stated the approximate time frame to create a Special Service Area was three months. The Special Service district becomes effective 60 days after the court's approval of the Special Service Area's creation. Mayor Cuda noted a meeting with the affected Special Service Area property � owners wil be scheduled for September once specific project cost figures are developed by Smith Engineering, Inc. Motion by Baird, seconded by McClatchey to adjourn the meeting at 8:46 p.m. Voting Aye: Baird, McClatchey, Murgatroyd Voting Nay: None Absent: None The meeting was adjourned at 8:46 p.m. C� rr( Steven Murgatroyd, inan e Chairman �..