McHenry Times

Village of Algonquin Committee of the Whole met Nov. 12

Here are the minutes provided by the committee:

Trustee Smith, Chairperson, called the Committee of the Whole meeting to order at 7:30 p.m.

AGENDA ITEM 1: Roll Call to Establish a Quorum

Present: Trustees, Jerry Glogowski, John Spella, Laura Brehmer, Brian Dianis, Maggie Auger, Bob Smith, President, Debby Sosine and Clerk, Fred Martin.

A quorum was established

Staff in Attendance: Tim Schloneger, Village Manager; Mike Kumbera, Deputy Village Manager; Brooke Snow, Public Works Director Engineer; Jacob Uhlmann, General Services Intern; Dennis Walker, Chief of Police; and Kelly Cahill, Village Attorney.

AGENDA ITEM 2: Presentation of the Life Saving Award to Officer Panozzo

Chief Walker presented Officer Panozzo with the Life Saving Award for his heroic efforts

AGENDA ITEM 3: Proclamation Congratulating the Algonquin Argonauts 8U Football Team

President Sosine read the proclamation into the record

AGENDA ITEM 4: Public Comment

None

AGENDA ITEM 5: Community Development

None

AGENDA ITEM 6: General Administration

Mr. Kumbera:

A. Consider an Ordinance Amending the Village of Algonquin Annual Budget for Fiscal Year 2023-2024 Village department heads submitted requests to increase their budget for Fiscal Year Ending April 30, 2024, that require approval by the Village Board. Budget Ordinance No. 2023–O–11 created spending authority for Fiscal Year Ending April 30, 20234. Illinois statutes allow the Village Board to delete, add to, or change the budget by a vote of two-thirds of the corporate authorities then holding office. Exhibit A summarizes the budget revisions to the various line items made during fiscal year ending April 30, 2024. Spending for these revisions has caused the original fund budgets to be exceeded. Budget amendments for these increases to budgeted expenditures are justified under Illinois statutes as follows: budget increases for expenditures may be made due to the use of Fund Balance (cash reserves) that existed at the beginning of the fiscal year. The preliminary change in fund balance (Expenditures over Revenues) in the General Fund indicates a decrease of $1,730,716 at April 30, 2024.

The amendment requires the two-thirds approval of the Village Board. The changes, which are explained as follows:

General Fund:

General Services Administration had the following expenditure budget increase:

− Sales Tax Rebate increased $470,227 due to the Enclave business development agreement, approved with Ordinance No. 2022-O-48, to rebate certain sales tax upon business opening. Two of the Enclave’s businesses opened during fiscal year 2024. The offset for this increase is in cash reserves from beginning fund balance.

The Public Works General Services Department had the following expenditure budget increases:

− Park Upgrades increased $29,220 due to all park restroom fixtures being upgraded from porcelain to stainless steel in an effort the prevent vandalism. The offset for this increase is in cash reserves from beginning fund balance. The Non-Departmental line items had the following expenditure budget increases:

− Professional Services increased $11,000 to fund the Founder’s Day fireworks display.

− Transfers to the Cemetery Fund increased $16,937 to fund the Columbarium Engineering costs.

The offset for these increases is cash reserves from beginning fund balance, the Columbarium expenditures were a carryover from fiscal year 2023.

Park Improvement Fund:

The following expenditure budget increased:

− Capital Improvements increased a total of $130,345 due to work being done on Holder Park and James

B. Wood playground projects before April 30,2024. These projects are budgeted for fiscal year 2025.

The offset for this increase is in cash reserves from beginning fund balance.

Water & Sewer Improvement Fund:

The following expenditure budget increased:

− Infrastructure Maintenance increased $450,000 due to the entire contract price of the Copper Oaks Tower Maintenance program being paid in the current fiscal year instead of being split between fiscal years 2023 and 2024. The offset for these increases is in cash reserves from beginning fund balance as the expenditures were carryover from FY 2024.

Village Construction Fund:

The following expenditure budget increased:

− Outsourced Building Maintenance increased a $48,200 due to the emergency replacement of the GMC boiler.The offset for this increase is in cash reserves from beginning fund balance.

Natural Area Maintenance & Drainage Fund:

The following expenditure budgets increased:

− Wetland Mitigation increased $60,000 due to the Trials of Woods Creek and Towne Park wetland mitigation required projects being completed with restricted funds.

− Watershed Protection increased $38,573 due to the CarMax required project being completed with restricted funds.

− Capital Improvements increased $51,000 due to the additional costs of the Wynnfield detention project over the ComEd Green Region Grant received.

The offset for these increases is the use of restricted funds (Wetland Mitigation and Watershed Protection) and cash reserves from beginning fund balance (Capital Improv.).

Staff recommends moving this forward to the Village Board for consideration Board Meeting to amend the budget for Fiscal Year Ending April 30, 2024.

It is the consensus of the Committee to move this on to the Village Board for approval.

Mr. Schloneger:

B. Consider an Ordinance Amending Chapter 39.24 Small Wireless Facility Increasing the Fees

Effective July 1, 2024, Illinois Public Act 103-0601 authorized municipalities to increase the annual small wireless facility poll attachment fees from $200 per year to $270 per year or more if such amount were to be properly authorized by the Federal Communications Commission.

It is recommended to amend Chapter 39.24, Small Wireless Facility, increasing the annual fee to $270.

It is the consensus of the Committee to move this on to the Village Board for approval.

Mr. Kumbera:

C. Consider a Resolution Accepting the Algonquin Police Pension Municipal Compliance Report for Fiscal Year End April 30, 2024

In accordance with House Bill 5088, attached is the Municipal Compliance Report for the Algonquin Police Pension Fund. Each year, the Police Pension Board must report to the Board of Trustees on the fund’s financial status at the close of the fiscal year for tax levy considerations.

Staff recommends the Committee of the Whole forward this item to the Village Board for acceptance by resolution at their meeting on November 19.

It is the consensus of the Committee to move this on to the Village Board for approval.

D. Consider a Resolution Accepting the Actuarial Funding Report for the Algonquin Police Pension Fund for the Contribution Year May 1, 2024 to April 30, 2025

Presented is an independent actuarial report from Lauterbach and Amen for the Algonquin Police Pension

Fund, dated May 1, 2024. The fund is 81.95% funded, reflecting a 0.38% increase from the previous year. The funding policy aims for 100% funding over a 15-year layered amortization period. Some additional highlights of this year’s report include:

9.0%,Increase in Recommended Contribution

$5.3M, Increase in Fair Value of Assets

9.5%, Rate of Return (Market)

$0.5M, Increase in Unfunded Liability

The Algonquin Police Pension Fund Board of Trustees requests that the Village Board levy $2,235,861 based on the actuarial valuation for the fiscal year beginning May 1, 2024. This represents an increase of $185,353 from the previous year’s valuation.

Staff recommends the Committee of the Whole forward this item to the Village Board for approval by resolution at their meeting on November 19.

It is the consensus of the Committee to move this on to the Village Board for approval.

E. Consider a Resolution for the 2024 Property Tax Levy

The resolution presented establishes the amount the Village requests for its 2024 property tax levy. State statutes require that the corporate authorities of the Village pass a resolution estimating the amount of tax to be levied not less than 20 days before the adoption of the final levy, which is scheduled to be presented at the December 17 Village Board meeting.

For the 2023 tax levy year, the Village’s portion of the resident’s tax bill was approximately 6.3 percent (with some minor variations depending on the exact location of the household). In FY 24/25, property taxes comprise 27 percent of the General Fund revenue, including the Road and Bridge tax levy levied by the township level of government. The Village, a home-rule unit of government, is not subject to the Property Tax Extension Limitation Law (PTELL), however, the Village is required to comply with the “Truth in Taxation Law.” The law places requirements on the Village when adopting the 2024 property tax levy if the proposed 2024 gross property tax levy is 105 percent greater than the 2023 net property tax extension. Property tax revenues are not used to support business-like activities that are accounted for in enterprise funds, such as the Village’s Water and Sewer Utility.

The recommendation for the 2024 Tax Levy is $6,730,000. This is an increase of $300,000 from the 2023 tax levy. The details are shown in Exhibit A, which is attached. As the proposed levy is 104.66 percent of last year’s extensions, there is no requirement for a public hearing under the Truth in Taxation Statute. The recommendation does take into consideration several factors that will impact the FY 25/26 financial plan, including:

• The actuarial contribution recommendation for the Algonquin Police Pension Fund, which exceeds the statutory requirement with a 100 percent funding level by 2033.

• The proportion of state-shared revenues and their stability in the long term.

• Operational and capital needs for the upcoming period.

• Growth in Equalized Assessed Valuation (EAV) from property value appreciation and new construction.

Based on preliminary data obtained from Kane and McHenry County, equalized assessed valuation in the Village is expected to increase for the ninth consecutive year. The estimate of EAV for 2024 is $1,320,000,000, which is 8.0% more than last year, illustrating an appreciation of real estate values and new construction. The assessors in each county use a three-year history of property values, including sales experience, to determine the reassessment or current valuation. Assessments generally lag behind current market pricing by 18 months.

The estimated tax rate for 2024 would be 0.510 per $100 of EAV (refer to Exhibit A for details), which is less than 2023. A draft resolution reflecting this data is also attached.

If the Village Board concurs, a resolution should be presented for approval at the November 19 Village Board meeting.

It is the consensus of the Committee to move this on to the Village Board for approval.

AGENDA ITEM 7: Public Works & Safety

Ms. Snow:

A. Consider an Agreement with Christopher B. Burke Engineering, LTD for the Construction Observation Services for the Algonquin Meadows Development

Presented is an agreement to perform construction observation of on-site development improvements within the Algonquin Meadows Subdivision Development in the amount of $521,800.

This agreement will be executed between the Christopher B. Burke Engineering, LTD. (CBBEL) and the Village of Algonquin for on-site construction observation of site development activities, including public improvements per the approved Algonquin

Meadows Development plans.

CBBEL will be compensated through the provided Escrow account from Lennar for the services proposed.

These funds will be replenished at the request of Village staff, as needed.

Therefore, it is our recommendation that the Committee of the Whole take action to move this matter forward to the Village Board for approval of on-sight construction observation services for the Algonquin Meadows Development for $521,800.

It is the consensus of the Committee to move this on to the Village Board for approval.

AGENDA ITEM 8: Executive Session

A. Personnel Matters

Moved by Smith second by Auger to recess the Board Meeting and move to Executive Session at 7:43 pm

Roll call vote; voting aye – Trustees Dianis, Glogowski, Auger, Spella, Brehmer, Smith

Motion carried; 6-ayes, 0-nays

Moved by Smith second by Brehmer to reconvene the Committee of the Whole Meeting from Executive Session at 8:09 pm

Roll call vote; voting aye – Trustees Dianis, Glogowski, Auger, Spella, Brehmer, Smith

Motion carried; 6-ayes, 0-nays

There was no action taken

AGENDA ITEM 9: Other Business

None

AGENDA ITEM 10: Adjournment:

There being no further business, Chairperson Smith adjourned the meeting at 8:10 p.m.

https://www.algonquin.org/egov/documents/1732114594_22501.pdf