Village of Huntley Village Board met Dec. 8.
Here are the minutes provided by the board:
December 8, 2022 Village Board Meeting
CALL TO ORDER:
A meeting of the Village Board of the Village of Huntley was called to order on Thursday, December 8, 2022 at 7:00 p.m. in the Municipal Complex, Village Board Room, 10987 Main St., Huntley, Illinois 60142.
ATTENDANCE:
PRESENT: Mayor Timothy Hoeft; Trustees: Ronda Goldman, Mary Holzkopf, Niko Kanakaris, Curt Kittel, Harry Leopold, and JR Westberg.
ABSENT: None
IN ATTENDANCE: Village Manager David Johnson, Deputy Village Manager Lisa Armour, Director of Finance Cathy Haley, Director of Human Resources Chrissy Hoover, Director of Development Services Charles Nordman, Director of Public Works and Engineering Tim Farrell, Chief of Police Robert Porter, Village Clerk Rita McMahon, and Village Attorney Betsy Gates-Alford.
PLEDGE OF ALLEGIANCE: Mayor Hoeft led the Pledge of Allegiance.
SPECIAL PRESENTATIONS: None
PUBLIC COMMENTS: None
CONSENT AGENDA:
All items listed under Consent Agenda are considered to be routine by the Village Board and may be approved and/or accepted by one motion with a Roll Call Vote. If further discussion is needed, any member of the Board may request that an item be moved off of the Consent Agenda to Items for Discussion and Consideration.
a) Consideration - Approval of Payout Request No. 2 to Martam Construction, Inc. for Water Main Replacement along IL Route 47 in the amount of $116,881.20
Mayor Hoeft asked if the Village Board had any comments or changes to the Consent Agenda; there were none.
A MOTION was made to approve the December 8, 2022 Consent Agenda.
MOTION: Trustee Leopold
SECOND: Trustee Westberg
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold, and Westberg
NAYS: None
ABSENT: None
The motion carried: 6-0-0
ITEMS FOR DISCUSSION AND CONSIDERATION:
a) Public Hearing: Village of Huntley Fiscal Year 2023 Annual Operating and Capital Budget Mayor Hoeft asked for a motion to open the public hearing for the Fiscal Year 2023 Budget.
A MOTION was made at 7:02 p.m. to Open the Public Hearing.
MOTION: Trustee Westberg
SECOND: Trustee Goldman
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold, and Westberg NAYS: None
ABSENT: None
The motion carried: 6-0-0
Village Manager David Johnson stated that in accordance with Illinois State Statute and direction received from the Village Board of Trustees, the Fiscal Year 2023 Annual Operating and Capital Budget is presented for final consideration. Upon final Village Board approval, staff will file the required budget documentation with all appropriate County offices in both McHenry and Kane Counties.
STAFF ANALYSIS
Through the budget preparation and review process, operational and capital project goals have been identified for completion in 2023. Goals have been proposed which are in support of the mission, vision, and statement of strategic intent in the 2022-2025 Strategic Plan. The operating and capital budgets have been reviewed with the Village Board in the following meetings:
• October 13, 2022 – Village Board Meeting – Review of Financial and Debt Management Policies (surplus revenue transfer history, outstanding debt balances, and debt per capita data), and Review of Personnel Staffing, Pension and Insurance Summary
• October 27, 2022 – Village Board Meeting – Review of Major Capital Revenue Sources and Preliminary Capital Requests from Departments.
• November 10, 2022 – Village Board Meeting – Policy Direction Regarding 2022 Tax Levy
The 2023 Fiscal Year (FY23) Operating and Capital Budget totaled $51,627,506 in expenditures for all nineteen funds. Compared to the FY22 Budget, the FY23 Budget proposes $7,438,375 (17%) more in total expenditures. The FY23 General Fund expenditures are $17,182,012 or 33% of the total budget for all funds. Of the other major funds, the proposed expenditures and percentages of the overall budget are as follows:
▪ Water Capital Improvement and Equipment Fund $8,794,000 (17%)
▪ Street Improvement and Road & Bridge Fund $7,457,493 (14%)
▪ Water Operating Fund $2,870,803 (6%)
▪ Wastewater Operating Fund $2,859,643 (5%)
Forty-eight percent (48%) of the proposed budget is dedicated to investing in the Village’s infrastructure assets. Most importantly, the FY23 Budget is reflective of and focused on the Village’s vision of being the premier location in the region offering a healthy, well-balanced, prosperous, safe and friendly community for all.
LEGAL ANALYSIS
Pursuant to State law, the draft budget document was made available for public inspection on the Village’s website and at the front counter of the Municipal Complex beginning Monday, November 28, 2022. In addition, the required public notice was published in the Northwest Herald on November 25, 2022, informing the general public of the budget public hearing scheduled for Thursday, December 8, 2022, at 7:00 p.m. at the regularly scheduled Village Board meeting.
Village Manager Johnson presented highlights of the transmittal letter included in the FY2023 Budget highlighting many of the accomplishes of 2022 and goals for 2023. He included highlights of the proposed expenditures in the Capital Funds and Strategic Plan performance measures outlining the results of the resident survey. Village Manager Johnson continued his presentation saying the transmittal letter was written with the goal of bringing the reader into the Village’s FY23 budget development process by sharing previous financial performance, future financial projections, and the identification of factors that influenced the formulation of this policy document. While rising interest rates, recession indicators, inflation, supply chain disruptions and global unrest will be challenging to navigate in 2023, Huntley’s local economy remains strong and sustainable. He continued saying that most importantly, the Village’s commitment to providing excellent services is unwavering. The FY23 budget maintains high quality services and brings once-in-a lifetime projects like the continued redevelopment of the downtown and the heart of the Village to life. Village Manager Johnson concluded saying he would like to recognize and thank the Department Heads for their work in presenting budget requests that align with the Strategic Plan and are ultimately intended to enhance the quality of life for the residents with special recognition and thanks to Cathy Haley, Director of Finance, and Lisa Armour, Deputy Village Manager, for making this an award-winning document. Village Manager Johnson said he and staff would be happy to answer any questions of the public or Village Board.
Mayor Hoeft asked if the Trustees or any members of the public in attendance wished to make a public comment. There were none.
A MOTION was made at 7:25 p.m. to Close the Public Hearing.
MOTION: Trustee Kanakaris
SECOND: Trustee Kittel
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold, and Westberg
NAYS: None
ABSENT: None
The motion carried: 6-0-0
b) Consideration - An Ordinance Adopting the Village of Huntley Fiscal Year 2023 Annual Operating and Capital Budget
Mayor Hoeft thanked Village Manager Johnson and the Staff for their work in presenting the FY2023 budget. Mayor Hoeft asked if there were any questions or comments. There were none.
A MOTION was made to approve an Ordinance Adopting the Village of Huntley Fiscal Year 2023 Annual Operating and Capital Budget.
MOTION: Trustee Goldman
SECOND: Trustee Holzkopf
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold, and Westberg
NAYS: None
ABSENT: None
The motion carried: 6-0-0
c) Consideration - An Ordinance Authorizing the Levy and Collection of Taxes for the Village of Huntley 2022 Annual Property Tax Levy in the Amount of $5,138,634 and to direct the Village Treasurer to Record the Document Accordingly
Director of Finance Cathy Haley said the 2022 Tax Levy request for taxes payable in 2023 is $5,138,634. Once approved by the Village Board, staff will file the property tax levy ordinance with all appropriate offices at both McHenry and Kane Counties.
STAFF ANALYSIS
State law requires that the levy cannot be adopted sooner than twenty (20) days after the initial discussion on the levy, which took place at the November 10, 2022 Village Board meeting.
The 2022 levy request is $5,138,634. The 2022 property tax levy request follows the Village’s financial policy to keep its property tax rate as low as possible. The Village is a home rule community and levies for dollars. However, in an attempt to hold the 2021 rate the same, the Village can still capture additional dollars based on the increasing overall Estimated Assessed Valuations (EAV) received from McHenry and Kane County. This dollar increase equates to $156,027.
This amount will cover the increase to the Village’s obligation to the Police Pension Fund in the amount of $119,027. Costs for the Police Pension Fund are based on calculations done by a third party actuary. The benefits and benefit levels for the Police Pension Fund are governed by State Statute and can only be amended by the General Assembly. The current minimum statutory requirement is that the Village’s Police Pension Fund be at least 90% funded by 2040. The Village is committed to meeting its pension obligations. The additional dollar amount of $37,000 will supplement General Fund operations.
FINANCIAL IMPACT
Property tax bills are comprised of no less than nine (Kane County) or ten (McHenry County) separate taxing districts, including the Village. Each taxing district determines the total dollar amount to levy on property within the taxing district boundaries. A tax rate is calculated based on this total dollar request and the total assessed value of property within the taxing district boundaries. The tax rate is what a resident sees on their tax bill for each entity having authority to place a levy on their property. The EAV of an individual resident’s property is multiplied by each tax rate to determine the amount of tax owed for the respective calendar year. The Village of Huntley is a home rule community and levies for dollars. The tax rate becomes a calculation based on the EAV (EAV/100 x Rate = Total Levy Dollars).
The EAV is determined by the township assessor’s office, while the dollars are requested by the Village for the Village’s portion of the tax bill. Therefore, the rate is a factor of these two amounts. The preliminary estimated EAV from the counties indicate a potential increase from 2021 of 10.35%. Of this percentage, 3.13% can be attributed to new construction growth. Increasing the levy lines for new growth allows the Village the opportunity to increase the property tax dollars without impacting existing residents.
Mayor Hoeft asked if there were any questions or concerns. There were none.
A MOTION was made to approve an Ordinance Authorizing the Levy and Collection of Taxes for the Village of Huntley 2022 Annual Property Tax Levy in the Amount of $5,138,634 and to Direct the Village Treasurer to Record the Document Accordingly.
MOTION: Trustee Westberg
SECOND: Trustee Kanakaris
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold, and Westberg
NAYS: None
ABSENT: None
The motion carried: 6-0-0
d) Consideration – Approval of an Ordinance abating the tax hereto levied for the year 2022 to pay the principal of and interest on General Obligation Bonds, Series 2020, of the Village of Huntley, McHenry and Kane Counties, Illinois
Mayor Hoeft stated that on June 11, 2020 the Village adopted Ordinance Number 2020-06.41, which provided for the issuance of General Obligation Bonds, Series 2020. This issuance was for the refunding of Debt Certificates 2015 and 2017, and the issuance of new monies to cover the cost of Downtown TIF Improvements for $1,500,000. The property tax levies necessary to pay these bonds were included in the bond ordinance and the related notification of sale, and filed with each of the County Clerks prior to closing.
STAFF ANALYSIS
This ordinance will abate this levy in full since other revenue sources have been dedicated to the payment of this debt principal and interest. Revenue from the Wastewater Operating Fund has been dedicated to pay for the refunding of the 2017 Debt Certificate portion of the GO Bonds. Revenue sources dedicated to cover the Downtown TIF 2015 refunding and the new monies include the property tax dollars generated by the TIF increment, a portion of video gaming tax revenue, and transfers from the Water and Wastewater Operating Funds.
LEGAL ANALYSIS
The ordinance was prepared by the Village’s bond counsel, Mr. Kyle Harding of Chapman and Cutler LLP. Mayor Hoeft asked if there were any questions or comments. There were none.
A MOTION was made to approve an Ordinance abating the tax hereto levied for the year 2022 to pay the principal of and interest on General Obligation Bonds, Series 2020, of the Village of Huntley, McHenry and Kane Counties, Illinois.
MOTION: Trustee Leopold
SECOND: Trustee Kittel
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold, and Westberg
NAYS: None
ABSENT: None
The motion carried: 6-0-0
e) Consideration - Approval of an Ordinance abating the tax hereto levied for the year 2022 to pay the principal of and interest on General Obligation Bonds, Series 2022, of the Village of Huntley, McHenry and Kane Counties, Illinois
Mayor Hoeft said that on April 14, 2022 the Village adopted Ordinance Number 2022-04.20, which provided for the issuance of General Obligation Bonds, Series 2022, in the amount of $3,025,000. This issuance was for the construction of new, and enhancements of, existing water and sewer infrastructure improvements. The property tax levies necessary to pay these bonds were included in the bond ordinance and the related notification of sale, and filed with each of the County Clerks prior to closing.
STAFF ANALYSIS
This ordinance will abate this levy in full since other revenue sources have been dedicated to the payment of this debt principal and interest. Revenue from the Water Operating Fund user charges has been dedicated to cover the payments for this issuance.
LEGAL ANALYSIS
The ordinance was prepared by the Village’s bond counsel, Mr. Kyle Harding of Chapman and Cutler LLP. Mayor Hoeft asked if there were any questions. There were none.
A MOTION was made to approve an Ordinance abating the tax hereto levied for the year 2022 to pay the principal of and interest on General Obligation Bonds, Series 2022, of the Village of Huntley, McHenry and Kane Counties, Illinois.
MOTION: Trustee Goldman
SECOND: Trustee Westberg
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold, and Westberg NAYS: None
ABSENT: None
The motion carried: 6-0-0
f) Consideration – Approval of the Special Tax Rolls for the Village of Huntley Special Service Areas
Director of Finance Cathy Haley reported that the Village Board is being requested to amend the tax rolls and abate taxes for each Special Service Area (SSA) in the Village. The need to amend the Special Tax Rolls and abatement of SSA taxes is the result of the actual Special Tax Requirement in each Special Service Area for the 2022 levy year for taxes payable in 2023.
STAFF ANALYSIS
The Village is not requesting to actually levy taxes for Special Service Areas 6, 7, 8, 9, and 10, but is required to file Special Service Area Ordinances to ensure that adequate funds are available to pay for the annual bond and interest payment of each Special Service Area. The actual levy was requested at the time of bond issuance for each Special Service Area.
MuniCap, Inc., the Village’s financial consultant for administering the service areas, calculates the Special Tax Requirements for Special Service Areas #6 - 10 and prepares a report pursuant to the corresponding “Rate and Method of Apportionment of the Special Tax” as stated in the bond documents. As shown in the chart below all taxes are well below the maximum tax for each Special Service Area.
The annual debt service typically increases at around 2% per year. Assuming no other factors, this will result in a small increase in the special tax requirement each year.
FINANCIAL IMPACT
Special Service Areas 5, 11, 12, 13, 14, 15, 16, 17, and 18 are for maintenance of open space and common area in the residential subdivisions. SSA #5 (Southwind) is the only active maintenance SSA levy at this time. An increase over last year’s levy in the amount of $9,500 is being requested for the 2022 SSA #5 levy to cover the total FY23 actual maintenance costs being provided to this subdivision. Part of the increase in costs is due to the request from residents of the subdivision to enhance some of the entryway landscaping. The common area and open space in the other eight Special Service Areas are the responsibility of the homeowner’s associations in each of the respective neighborhoods, and the SSA’s are considered “dormant.” The Village would only enact the SSA’s if the common area and open space were not being maintained properly.
LEGAL ANALYSIS
The Village’s third party tax advisors have reviewed the proposed ordinances.
Director Haley read the following request of the Village Board for a motion to approve the following ordinances:
• An Ordinance Amending the Special Tax Roll for Special Service Area Number 5 (Southwind Subdivision)
• An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 6 (Southwind Subdivision)
• An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 7 (Southwind Subdivision)
• An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 8 (Southwind Subdivision)
• An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 9 (Wing Pointe Subdivision)
• An Ordinance Amending the Special Tax Roll and Abating Special Service Area Taxes for Special Service Area Number 10 (Heritage of Huntley Subdivision)
• An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 11 (Georgian Place Subdivision).
• An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 12 (Northbridge Subdivision).
• An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 13 (Covington Lakes Subdivision)
• An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 14 (Lions Chase Subdivision)
• An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 15 (Cider Grove Subdivision).
• An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 16 (Talamore Subdivision).
• An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 17 (Cider Grove Unit #2 Subdivision).
• An Ordinance Abating the Special Service Area Taxes for Special Service Area Number 18 (Huntley Commercial Center Subdivision).
A MOTION was made to approve the ordinances as read.
MOTION: Trustee Leopold
SECOND: Trustee Kanakaris
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold, and Westberg
NAYS: None
ABSENT: None
The motion carried: 6-0-0
g) Consideration - Ordinance Implementing a Utility Rate Structure FY23 – FY25 for Water and Wastewater Usage
Village Manager Johnson stated that after discussion at the December 1, 2022 Village Board meeting, staff was directed to present an ordinance for consideration establishing the Utility Rate structure for calendar years 2023 through 2025.
One of the primary commitments that the Village makes as a governmental entity is to preserve and enhance the public health, safety, and welfare of its citizens and visitors to the community. There is likely no greater responsibility that the Village has than providing safe potable drinking water to the general public. Likewise, ensuring that the effluent from the Village’s wastewater treatment operations is not harmful to the environment is an integral part of being good stewards of local natural resources.
The Village’s water and wastewater (sanitary sewer) operations are a self-supporting enterprise that does not receive any property tax or other tax-related income. Collectively, the water and wastewater operations are referred to as the Village’s utility operations. Volume-based customer fees and related income are collected to cover the cost of operations and maintenance (O & M), along with any capital improvements.
STAFF ANALYSIS
The Power Point presentation at the December 1 Board meeting provided a comprehensive overview of the existing utility system including:
• Water usage over the past decade and demands on the existing system
• Summary of water and sewer fund capital projects
• Fund balances in the water operating and capital funds and the wastewater operating and capital funds
• Rate comparisons with neighboring communities
• Proposed new rate structure for FY23-FY25
• Estimated potential new revenue
2022-2025 Strategic Plan Alignment
The Strategic Plan identifies “Forward Looking Community” as a strategic focus and the following goal: “Management of Infrastructure Assets for Today and Tomorrow.” Reviewing the utility rate structure in review of the Village’s water and wastewater operations and maintenance assists in assuring safe potable drinking water is provided to the general public and that treatment of wastewater is not harmful to the environment.
FINANCIAL IMPACT
Based on the current operational costs and continued capital expenditures within these funds, the following rate structure is being recommended.
⮚ Current rate structure = $3.85 for water and $5.09 for sewer ($8.94 total).
Water and Wastewater Rates:
Rates to be charged for water supplied from the municipal water system shall be based on metered water usage, which shall be billed bi-monthly.
1. Effective January 1, 2023, the consumer shall pay $4.24 (+.39 cents) per 1,000 gallons of consumption for water and $5.60 (+.51 cents) per 1,000 gallons of consumption for sewer ($9.84 total (+.90 cents))
2. Effective January 1, 2024, the consumer shall pay $4.66 (+.42 cents) per 1,000 gallons of consumption for water and $6.16 (+.56 cents) per 1,000 gallons of consumption for sewer ($10.82 total (+.98 cents))
3. Effective January 1, 2025, the consumer shall pay $5.13 (+.47 cents) per 1,000 gallons of consumption for water and $6.78 (+.62 cents) per 1,000 gallons of consumption for sewer ($11.91 total (+$1.09))
Irrigation Only Meter Rate:
1. Effective January 1, 2022, the consumer shall pay $7.70 per 1,000 gallons of consumption. No change is being recommended to this rate at this time. This rate will be reviewed again in 2025.
Capital and Infrastructure Fee:
The flat fee is shown with a rate increase of $.50 for water and $.50 for sewer each year through 2025. The residential cross-connection fee of $0.75 per bi-monthly bill remains the same.
The minimum bill is based on 3,000 gallons of water/sewer usage:
Below are examples of a minimum residential bi-monthly bill, and a bi-monthly bill for average usage of 10,000 gallons. Of the 11,725 water/sewer accounts approximately 2,174 are minimum bills. (18.5%)
A MOTION was made to approve an Ordinance Implementing a Utility Rate Structure FY23 –FY25 for Water and Wastewater Usage.
MOTION: Trustee Goldman
SECOND: Trustee Westberg
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold, and Westberg
NAYS: None
ABSENT: None
The motion carried: 6-0-0
VILLAGE ATTORNEY’S REPORT: None
VILLAGE MANAGER’S REPORT: None
VILLAGE PRESIDENT’S REPORT: Mayor Hoeft reported that the December 15th Village Board and Liquor Commission meeting will be the last meeting for 2022. He added that the Indoor Farmers Market will take place this Saturday inside the Legion from 9am – 1pm. Mayor Hoeft provided the results from the Very Merry Huntley Christmas Tree Decorating Contest saying that 10 groups participated and raised almost $600 for the Grafton Food Pantry. He stated the winners were The Hounds of Huntley in 1st place, Junior Girl Scout Troop 73 of Huntley was 2nd place and Troop 1261 & Daisy Troop 1052 came in 3rd place. Mayor Hoeft thanked all the participants.
UNFINISHED BUSINESS: None
NEW BUSINESS: None
EXECUTIVE SESSION: Yes
A MOTION was made at 7:37 p.m. to Enter into Executive Session for Discussion of Personnel, Risk Management Claims and Information, Criminal Investigations, and Internal Audits Involving potential, known or suspected fraud risks.
MOTION: Trustee Leopold
SECOND: Trustee Westberg
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold and Westberg
NAYS: None
ABSENT: None
The motion carried: 6-0-0
A MOTION was made at 8:00 p.m. to Exit Executive Session.
MOTION: Trustee Kanakaris
SECOND: Trustee Holzkopf
AYES: Trustees: Goldman, Holzkopf, Kanakaris, Kittel, Leopold and Westberg
NAYS: None
ABSENT: None
The motion carried: 6-0-0
POSSIBLE ACTION ON ANY CLOSED SESSION ITEM: None
ADJOURNMENT:
There being no further items to discuss, a MOTION was made to adjourn the meeting at 8:01 p.m. MOTION: Trustee Kanakaris
SECOND: Trustee Leopold
The Voice Vote noted all ayes and the motion carried.
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