Village of Oswego Committee of the Whole met Nov. 5.
Here is the minutes provided by the committee:
CALL TO ORDER
President Troy Parlier called the meeting to order at 6:01 p.m.
ROLL CALL
Physically Present: President Troy Parlier and Trustees James Marter, Pam Parr, Judy Sollinger and Brian Thomas. Absent: Trustees Terry Olson and Luis Perez
Staff Present: Dan Di Santo, Village Administrator; Christina Burns, AVA/HR Director; Tina Touchette, Village Clerk; Mark Horton, Finance Director; Brad Delphey, Deputy Chief; Jennifer Hughes, Public Works Director; Rod Zenner, Community Development Director; Jenette Sturges, Community Engagement Coordinator, Marketing; Joe Renzetti, IT/GIS Manager; Carri Parker, Purchasing Manager; Susan Quasney, Project Engineer; and Ryan Morton, Village Attorney.
CONSIDERATION OF AND POSSIBLE ACTIONS ON ANY REQUESTS FOR ELECTRONIC PARTICIPATION IN MEETING
There was no one who participated electronically.
PUBLIC FORUM
Public Forum was opened at 6:02 p.m.
Frank Johnson addressed the Board regarding marijuana sales. Provided a brief background; he is opposed to the sales; negative affects on the community; it is a gateway drug; opioid epidemic; setting an example for children and future.
There was no one else who requested to speak; the Public Forum was closed at 6:05 p.m.
OLD BUSINESS
There was no Old Business.
NEW BUSINESS
F.1. Financial Forecast for Fiscal Years 2021 - 2025 Presentation and Discussion
Finance Director Horton addressed the Board regarding the five-year forecast.
Assumptions
• Business as usual
➢ no service reductions
➢ no new personnel
➢ maintain balanced budgets
• Growing community and tax base ➢ new business
➢ new residential
➢ increasing population
• Major capital projects on the horizon ➢ Alternative water source
➢ Metra
➢ Wolfs Crossing
➢ Very costly; will not have revenue to support
• Revenues
➢ one new revenue source
➢ estimated with minimal growth (1%-2%)
• Expenditures
➢ personnel costs per existing contracts through the next 5 years ➢ 1% annual increase in operating costs
Current Financial Reserves
• Increased the reserves to off-set unexpected expenditures
• TIF
➢ Developments need to be completed before the fund balance will change
• Great shape overall
Village of Oswego
Reserves
Non-Major Funds Village Debt
• Principal
➢ $8.2 million supported from W/S
➢ $36.2 million supported from General
➢ $16 million more on the way for TIF fund
• All paid by sales tax money
• Reserve at Hudson Crossing
➢ Repaid through Shodeen and the increment
✓ If not enough then an SSA will be established
• Vehicle Fund
➢ average $548,000 annual expenses next five years. Funded with local sales tax
• Garbage Collection Fund
➢ revenues match expenses ➢ pass through fund
• MFT Fund
➢ new state tax (TRF), debt service till FY 28, restricted uses
➢ TRF (transportation fund)is a new revenue source
✓ Approximately $600,000 annually, but will fluctuate
➢ Restricted fund
➢ Will grow over the next 5 years
➢ Funds not slated yet
Major Funds
• TIF Fund
➢ supported from existing sales tax revenues/water revenue
➢ developments under construction
➢ initial increment from development assumed for FY 23, FY 24
• Capital Improvement Fund
➢ annual revenue of $4.1 million (HRST)
➢ $48 million in identified expenditures next five years
➢ $5.7 million shortfall in FY 22 from Wolf Crossing expenditures
✓ Director Hughes to provide an update on the Wolf Crossing project at a future Board meeting
• Water & Sewer Fund
➢ average $7.8 million in revenue next five years ➢ average $8.5 million next five years
➢ $3.5 million allocated to capital improvements ➢ FY 25 reserve down to $3.5 million
• Water & Sewer Capital Fund
➢ annual revenue of $3.6 million -$3.5 million from Water Fund ➢ $15.7 million slated for improvements
➢ $3.9 million average reserve due to rate increases implemented for large projects coming up
• General Fund
➢ expenditures average $20.6 million
➢ FY 21 $19.2 million increasing to $21.8 million in FY 25; continues to rise
➢ personnel services costs rising from 72% in FY 21 to 74% in FY 25 of total expenditures
➢ personnel services rising $600,000 annually; based on current structure
➢ total revenues increase from 19.1 to 19.8 million by FY 25
➢ tax revenues increasing from FY 21 $17.5 to $18 million by FY 25
➢ expenditures begin exceeding revenues in FY 21
➢ declining reserve balance to $5.9 million in FY 25, 26% of estimated FY 26 expenditures, below policy level of 30%
➢ very conservative estimating
➢ all projects in the forecast
• General Fund Revenues
➢ Sales tax is largest source, then Income tax, then Local Sales tax
➢ Property tax is fourth greatest revenue source –8% of total revenue
➢ Sales, income, local, use taxes account for 83% of total revenue
Financial Forecast
• What can we do to stay fiscally sound through FY 25
➢ maintain budgets within the constraints of annual revenues
➢ analyze ways to control personnel costs/benefits
➢ increase annual revenues/reduce expenditures
➢ cannabis tax not included
✓ if choosing to move forward; tax would be added to the forecast
Board and staff discussion focused on MFT increases; whether the State will take more money from municipalities this year; if they do, State will do it after the budget is approved; IML is watching the revenues; pension reform may help or hurt the Village; back log of bills are increasing; a lot that the Village cannot control; internet and cannabis tax is what the State is relying on; anything can happen; need to use the additional MFT revenue; staff will keep the Board updated on the State. There was no further discussion.
F.2. Video Gaming Code Amendment- Gas Stations
Clerk Touchette addressed the Board regarding whether to allow video gaming in gas stations. Over the years, staff received numerous requests for video gaming in gas stations. Currently, the Village does not have a liquor classification that would allow a gas station to have on-site consumption of alcohol. Two items were presented to the Board for discussion:
1) Whether to move forward with allowing video gaming at gas stations
Staff provided the qualifications required for current businesses, new businesses and video gaming only businesses. All current gas stations would fall under the current business requirements:
• Must have a valid Class A, C, D, E, G, or N Village of Oswego liquor license
• Must meet revenue restrictions for Class C and D liquor licenses (must receive more than 50% of its gross revenue from the sale of food)
• May require written permission from property owner
• Some corporate businesses may require permission for video gaming depending on the location/proximity to their business
• Interior layout and plans/renderings for the gaming area
• No window or neon signage relating to video gaming is allowed
Other areas to consider is whether to include additional requirements such as site plans, signage plans, or on- premise food sales. Exhibit B provided the communities that currently allow gaming at gas stations.
2) Direction from the Board as to which liquor classification should be brought forward for approval.
The Village does not currently have gas stations that are considered a truck stop. All gas stations hold either a Class B (packaged alcohol-all types), or a Class F (beer and wine only) liquor license for off-site consumption. The Village does not have a classification for on-site consumption at a gas station. Three options were provided to the Board:
• Create a “pour” supplemental license
• Create a new Class “Q” license
• Amend the Village’s current Class “A” license to separate taverns and video gaming cafes; and add gas stations and a restaurant/bar classification
➢ The A-2 classification would eliminate the revenue requirement that the Village currently has in the Class
C liquor license (50% of its gross revenue from the sale of food)
Each option comes with specific requirements. The third option is the preferred choice and would assist the Community Development Department, as well as the Clerk’s Office, when considering which classification an establishment would qualify for. If the Board decides not to allow video gaming at gas stations, staff would still like to move forward with amending the Class “A” liquor license to include classifications of “A-1”, “A-2” and “A-3” into Village code.
Board and staff discussion focused on requirements for on-site consumption; seeming unfair if not allowing in gas stations; whether there is a problem with enforcement; simplifying and clarifying the process; every request will come to the Board for approval. Staff was directed to move forward with amending the Class “A” liquor license and bringing the video gaming in gas stations item back for a vote at a future Board meeting. There was no further discussion.
CLOSED SESSION
A motion was made by Trustee Sollinger and seconded by Trustee Parr to enter into Closed Session for the purposes of discussing the following:
Sale, Lease, and/or Acquisition of Property [5 ILCS 120/2(c)(5) & (6)]
Aye: James Marter II, Pam Parr, Judy Sollinger, Brian Thomas
Absent: Terry Olson, Luis Perez
Nay: None
The motion was declared carried by a roll call vote with four (4) aye votes and zero (0) nay votes.
The Board adjourned to Closed Session at 6:45 p.m.
The Board returned to open session at 7:05 p.m.; all remaining members still present.
ADJOURNMENT
The meeting adjourned at 7:05 p.m.
http://www.oswegoil.org/pdf/11-5-19-cotw.pdf
Alerts Sign-up