HomeMy WebLinkAboutEXECUTIVE SESSION - 03/21/2017 - Land Acquisition (3)EXECUTIVE SESSION
March 21, 2017
9:18 P.M.
Chernick Conference Room
TOPIC: ❑ LITIGATION ❑ PERSONNEL X LAND ACQUISITION
VILLAGE BOARD VILLAGE BOARD
MEMBERS PRESENT MEMBERS ABSENT
STAFF PRESENT
C. JOHNSON G. KNICKERBOCKER
R. RUMMEL
Mayor Village Attorney
Village Manager
N. CZARNIK
M. ROAN
Village Trustee
Deputy Village Manager
P. FEICHTER
M. JABLONSKI
Village Trustee
Assistant Village Manager
J. FRANKE
W. J. PAYNE
Village Trustee
Acting Village Attorney
S. LISSNER
Village Trustee
J. PETRI
Village Trustee
C. PROCHNO
Village Trustee
Pursuant to a duly made and approved motion and a majority vote at a regularly scheduled meeting
of the Village President and Board of Trustees on March 21,
2017, this Executive Session was
called to consider a Land Acquisition matter.
Number of pages attached: 1
Date(s) of review for release: October 2017
Date of approval for release:
Date approved by Village Board: April 25, 2017
March 21, 2017
9:18 P.M.
1�1— Land Acquisition
The development at Busse Farm is not proceeding as quickly as expected. In order to vacate the
Public Works facility in time for the Township's needs, the Village needs to move forward with
locating an appropriate site for the new Public Works facility. The Village is looking at other
options for instead of using Busse Farm, such as the Berthold's property, or some property near
Pratt and Tonne. Property along Devon Avenue appears to be available at an appropriate price.
In order to fund this land acquisition, the Village could bond for $60 million, which would require
annual payments of $4.5 million for 20 years.
The original target date for the Village with the electric tax was to reach 90% funding by 2030. By
law, the Village needs its pensions to be 90% funded by 2040. If the Village uses the money from
the electric tax to bond instead of putting it all towards pensions, there will be no need to increase
the property tax, the Village will not be dependent on revenue from potential TIF funds, and have
immediate funds available to meet the land acquisition and construction needs for the new public
works facility.
The Village would still proceed with borrowing $10 million from Elk Grove Bank and Trust.
The consensus of the Board was to move forward a $50 million bond, to be repaid using electric
tax revenue, rather than keeping the electric tax as a dedicated funding source for pensions. Any
remaining electric tax over the annual bond payment would go to pensions.
The consensus of the Board was to cancel the intended increase to the property tax and $.03 per
therm increase to the natural gas tax in order to fund a bond issuance for Elk Grove 2025. The
Village will still proceed with the $.01 cent per therm increase to the natural gas tax as a dedicated
funding source for the Business Leaders Fund, and the 1 % increase to the telecommunications tax
as a dedicated funding source for the Capital Improvement Fund. Overall, this tax increase is
estimated to cost residents approximately $2 per month.
The meeting was adjourned at 9:48 p.m.