MINUTES OF THE PUBLIC BUDGET HEARING OF THE GURNEE VILLAGE BOARD

APRIL 13, 1992

The Public Hearing was called to order at 7:30 p.m. by Mayor Welton.

Roll Call, Present: Yost, Rocheleau, Ratfelders, Amaden
Absent: O'Brien, Smith

Other officials present: James T. Hayner, Village Administrator
Barbara Rominski, Village Attorney
Jim Repp, Director of Public Works

The Village Administrator began the discussion of the Utility Operating Fund, the Utility Surplus Fund, and the Capital Improvements Fund, all to be considered at this meeting. The Utility Operating Fund concerns the day-to-day operation of the sewer and water departments. This fund is in good shape financially since the Village has stayed on top of the rate structure over the years, and since the Village has required developers to install water and sewer mains and then to dedicate some to the Village, thereby, keeping the Village capital outlay as low as possible. The Utility Operating Fund revenue is detailed on page 203 of the budget. The Village Administrator noted much of this revenue comes from a charge of $175.00 per P.E. water connection fee, a charge of $100 per P.E. sewer connection fee, consumer installation fees and from regular use charges. Noted also was an Intergovernmental Agreement with the NSSD to shut off water if any customer does not pay overdue NSSD sewer bills. He noted that the water bills for FY 91-92 paid to the City of Waukegan in the amount of $1,420,000.00. Total revenue of this fund was the amount of $2,791,800.00.

The Director of Public Works explained the Utility Operating Fund expenditures, including capital expenditures, as detailed on pages 204-215 of the budget.

Trustee Yost asked if there was a regular maintenance program or contract for electric panels, etc.

The Director of Public Works replied that no standing contract exists.

The Village Administrator concluded this Fund was in sound shape.

The Village Administrator explained the Utility Surplus Fund, as detailed on pages 216 and 217 of the budget. He noted that he will be proposing a transfer in the amount of $200,000.00 to this fund from the Utility Operating Fund at the next Regular Village Board Meeting.

The Village Administrator noted that certain line item expenditure's amounts are being adjusted. However, this fund has a good fund balance.

The Director of Public Works explained the proposed expenditures, which are largely replacements, leak detections and preventive maintenance.

The Village Administrator explained the Capital Improvement Fund, as detailed on pages 188 and 189 of the budget. He noted also that he is proposing the transfer in the amount of $900,000.00 to this fund from the General Fund.

The Village Administrator noted several line item amount changes proposed.

The Village Engineer reviewed the proposed Capital Outlay expenditures, noting in particular, certain sidewalk installations and the beginning of a Village Bike Path System, located in the Commonwealth Edison ROW between Route 21 and the Tollway and between Green Bay Road and Northwestern Avenue. This system is proposed to be made of stone this year and possibly covered in asphalt during the next budget year.

The Village Administrator also noted the addition of an amount for the creation of a reserve fund for purchase of future vehicles. He noted that these expenditures are all recommended by the Director of Public Works, the Village Engineer and the Village Administrator.

The Village Engineer explained the proposed 1992 MFT Street Work program, as detailed in a memo draft, dated April 13, 1992. The program is estimated to cost in the amount of $425,000.00. An adjustment of the budget will be made.

The Village Administrator noted that the total budget figures do not reflect the results of a proposed interim census.

Trustee Amaden asked if any consideration is made in the budget for Governor Edgar's proposed elimination of the income tax surcharge for local governments.

The Village Administrator said that the Village is likely to lose the amount of $240,000.00 as its share of the surcharge share. However, he noted that the Village will receive sales tax revenue in the amount of over $2.9 million for this fiscal year. He anticipates the Village sales tax revenue will more than cover any income tax surcharge loss.

Discussion was held about the installation of sewer and water mains in Quality Acres and in Hickory Haven.

The Village Administrator explained the proposed remodeling of the proposed Police Station-Municipal Building, which would be funded by the Alternate Revenue Bond Fund in the amount of $400,000 to $450,000.

Rocheleau moved, seconded by Yost, to adjourn the Public Budget Hearing.

All Aye. Motion Carried.

The Public Hearing was adjourned at 10:42 p.m. by Mayor Welton.

Norman C. Balliet

Village Clerk