Kendall County Times

Village of Oswego Committee of the Whole met Jan. 7.

Here are the minutes provided by the committee:

CALL TO ORDER

President Ryan Kauffman called the meeting to order at 6:02 p.m.

ROLL CALL

Board Members Physically Present: President Ryan Kauffman; Trustees Tom Guist, Kit Kuhrt, Karin McCarthy Lange, Karen Novy, Jennifer Jones Sinnott, and Andrew Torres.

Staff Physically Present: Dan Di Santo, Village Administrator; Jean Bueche, Asst. Village Administrator; Tina Touchette, Village Clerk; Jason Bastin, Police Chief; Curt Cassidy, Incoming Public Works Director; Andrea Lamberg, Finance Director; Rod Zenner, Development Services Director; Joe Renzetti, IT Director; Kevin Leighty, Economic Development Director; Maddie Upham, Assistant to the Village Administrator; Bridget Bittman, Communications Manager; and Dave Silverman, Village Attorney.

PUBLIC FORUM

Public Forum was opened at 6:04 p.m. There was no one who requested to speak. The public forum was closed at 6:04 p.m.

OLD BUSINESS

There was no old business.

NEW BUSINESS

F.1 Debt Management Best Practices

Director Lamberg addressed the Board regarding best practices for debt management. Best practice is to have a debt management policy approved by the Board. It is also recommended that the policy be reviewed periodically for necessary updates. The policy sets forth comprehensive guidelines and promotes sound decision-making regarding issuance and management of debt by the Village. The objective of the policy is to obtain debt financing only when necessary.

Goals and Parameters

1. Debt will not be issued to finance general operating expenses or fund operating deficits.

2. Alternatives to debt financing will be considered such as other available revenue sources, interfund loans, application of grant proceeds, State/Federal aid or other funding options to meet the long term capital needs of the Village.

3. Current credit rating metrics used by the Village’s rating agency(s) will be evaluated to determine if the rating may be impacted by the issuance of debt, acceptance of long term loans, or other financial decisions or actions by the Village.

4. Capital projects with an estimated cost of $500,000 or less will ideally be funded with funds on hand or pay as you go financing, and not funded with new debt or loans. Utility rates and other revenue sources will be adjusted if needed to ensure that adequate funding will be available for projects under $500,000. Depending on the circumstances, consideration will be given to combine multiple capital projects that are under $500,000 into one debt issuance.

5. Debt repayment shall be structured so that level or declining debt service shall be used unless operational or financial reasons dictate otherwise, or if to achieve overall level debt service with existing bonds.

6. The potential financial benefits of issuing bank qualified bonds will be considered and, if possible, strive to limit annual issuance of debt to $10 million or less when such estimated benefits are greater than the benefits of exceeding the bank qualification limit. Should subsequent changes in the law change this limit, the Village policy will be adjusted accordingly.

7. Call provisions of approximately ten (10) to ten and one-half (10 ½) years or less will be considered to provide the Village flexibility to refinance debt in the future. Consideration of the call feature will be determined at the time of sale based on overall market conditions and investor acceptance.

8. Fixed rate debt as opposed to variable rate debt will be issued to minimize exposure to certain risks. If unusual circumstances warrant the issuance of variable rate debt, explanation must be provided and approved by the Village Board. The par amount of outstanding variable rate debt shall not exceed 10% of the Village’s total outstanding debt. The Village will not use derivative products in its debt structure.

9. Financial assistance requested for projects within a tax increment financing (TIF) district will be considered through the pay-as-you-go increment method or developer notes. General obligation bonds with a pledge of repayment by other means may be considered if deemed financially prudent for the Village.

Legal Constraints and Other Debt Limitations

The Village Board may utilize the guidelines established by this policy or may choose to consider other relevant factors in incurring debt. Any debt incurred in accordance with applicable law shall not be invalidated, impaired, or otherwise affected by non compliance with any part of the procedures set forth pursuant to this policy.

• Authority and Purposes of the Issuance of Debt

• General Obligation Debt Limitation

• Credit Implications

Debt Issuance Considerations

• Use of Professional Service Providers

• Types of Debt Issued

• General Obligation Bonds vs. Revenue Bonds

• Abatement of Property Tax Debt Service for General Obligation Bonds

• Methods of Sale

• Credit Enhancements

• Conduit Debt

Debt Administration

• Financial Disclosures

• Review of Financing Proposals

• Rating Agency Relations

• Refunding Policy on Existing Issuances

• Investment of Borrowed Proceeds

Board and staff discussion focused on debt ratios received after the packet was processed; credit rating metrics; rating agencies may vary; using most current metrics; repaying debt; conservative revenue sources; already using best practices criteria; memorializing into policy; policy approved in advance of pursuing a rating; staff will make a few changes and bring back to the Board for vote; how often the policy is reviewed; staff reviews the policy every year as part of the audit. Administrator Di Santo thanked Director Lamberg for helping the Village improve the bond rating. There was no further discussion.

F.2 Employee Support of the Guard and Reserves (ESGR) Presentation

Doug Wallace, Voluntary Chairman of ESGR in Northern Illinois, addressed the Board regarding a statement of support for the Guard and Reserve. The statement and support are non-binding. Mr. Wallace read the statement and President Kauffman signed the statement. Pictures were taken.

Mr. Wallace provided information to the Board and staff regarding the upcoming ESGR “Boss Lift” ice breaking training in Sturgeon Bay on February 12, 2025. The invitation is open to Oswego residents. Interested individuals should RSVP to him by the end of January 2025. President Kauffman stated he is very proud of our service members. There was no further discussion.

CLOSED SESSION

A motion was made by Trustee Jones Sinnott and seconded by Trustee McCarthy-Lange to enter Closed Session for the purposes of discussing the following:

• Pending and Probable Litigation

• Appointment, Employment, Compensation, Discipline, Performance, or Dismissal of Personnel

• Collective Bargaining, Collective Negotiating Matters, Deliberations Concerning Salary Schedules

• Sale, Lease, and/or Acquisition of Property

Aye: Tom Guist Kit Kuhrt

Karin McCarthy-Lange Karen Novy

Jennifer Jones Sinnott Andrew Torres

Nay: None

The motion was declared carried by a roll call vote with six (6) aye votes and zero (0) nay votes.

The Board adjourned to Closed Session at 6:21 p.m.

The Board returned to open session at 6:57 p.m. A roll call vote was taken. All Board members were physically present for the roll call.

ADJOURNMENT

The meeting adjourned at 6:57 p.m.

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