The Villiage of Hillcrest, IL
The Villiage of Hillcrest, IL

02/26/14: Minutes - Sewer Special Meeting




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02/26/14: Minutes - Sewer Special Meeting

Village of Hillcrest
Wednesday February 26, 2014
Special Meeting
7:00pm

The Special Meeting of The Village of Hillcrest was opened with the Pledge of Allegiance. Present and answering roll call were Trustees Rick Rhoads, Steve Dodson, Rich Elliott, Randy Salsbury, Dave Long, and Jeanie Sparacino. Also present were President Kim Whalen, Attorney Paul Keller, Treasurer Penny Payton and Village Clerk Patty Moreno.

The purpose of this Special Meeting was to discuss options of funding for bring sewer into the Village.

President Whalen stated that Trustee Long and she have been researching ideas on how to fund the sewer project. President Whalen stated before entering in discussion and ideas on how to fund the sewer project she would like everyone to keep in mind a couple of things. Whalen stated that currently the Village receives $27,000.00 in property taxes annually and $122,000.00 roughly in sales tax. Whalen states that the property tax is currently not enough to cover even the Maintenance employee’s salary. Whalen states that the village needs to research for ways to bring in more revenue to fund not only the sewer project but for other much needed maintenance in the Village such as the repair of the streets. Whalen stated that Jim Sparber from Baxter Woodman would be giving a presentation on options to fund the Sewer project.

Jim Sparber from Baxter Woodman explained the purpose of the project, the history and current project status, and the option on moving forward with the project. Sparber stated that the purpose of the project is the public health and safety, increased economic opportunity, and increase of property value. Sparber stated that the Village had investigated the opportunities for centralizing wastewater disposal in the early 2000’s. In 2009 the Village had researched the opportunity of ARRA funding but was denied. In 2011 the Village made an agreement with Rochelle for acceptance of wastewater. Sparber stated that the most current status is in 2013 the City of Rochelle pledged up to $100,000.00 for connection under Kyte River and the Village applied for a CDAP grant for partial system construction but was denied. Sparber stated that in 2014 the Illinois Capital Bill released $100,000.00. Sparber presented the board and residents with options in funding the project. Sparber presented the options as follows:

 

THE ENTIRE VILLAGE

Estimated Total Project Cost

                $11,000,000

Annual Payment

$705,618

Interest Rate    

2.50%

Loan Period

20

Monthly Debt Cost Service/User    

                $130.67

Number of Users

450

Monthly User Fee

 

Wastewater Treatment

$22.54

Fixed Sewer Rate Charge

$0.18

Water Service

$32.00 estimated

Total Monthly Water & Sewer Bill

$185.39

 

 

 

 

SOUTH HALF OF VILLAGE

Estimated Total Project Cost

$7,635,000

Annual Payment

$489,763

Interest Rate

2.50%

Loan Period

20

Monthly Debt Service Cost/User 

$123.68

Number of Users

330

 Monthly User Fee

 

Wastewater Treatment

$22.54

Fixed Sewer Rate Charge

$0.24

Water Service   

$32.00 estimated

Total Monthly Water & Sewer Bill

$178.46

 

 

 

 

SOUTH HALF OF VILLAGE WITH GRANT FUNDS

Estimated total Project Cost

$7,635,000

Rochelle Grant

$100,.000

Capital Bill Grant

$100,000

CDAP Grant

$450,000

USDA Grant

$1,000,000

Net Amount To Fiance

$5,985,000

Annual Payment

$325,244

Interest Rate

4.50%

Loan Period

40

Sales Tax Increase

$30,000

Property Tax Increase

$10,000

Net Annual Payment

$285,244

Monthly Debt Service cost/User

$72.03

Number of Ysers

330

Monthly User Fee

 

Wastewater Treatment

$22.54

Fixed Sewer Rate Charge

$0.24

Water Service

$32.00 estimated

Total Monthly Water & Sewer Bill

$126.81

 

 

 

 

BUSINESS DISTRICT

Estimated Total Project

$2,200,000

Rochelle Grant

$100,000

Capital Bill Grant

$100,000

CDAP Grant

$450,000

USDA Grant

$400,000

Net Amount to Finance

$1,150,000

Annual Payment

$62,495

Interest Rate

4.50%

Loan Period

40

Sales Tax Increase

$30,000

Property Tax Increase

$10,000

Net Annual Payment

$22,495

Monthly Debt Service Cost/User

$29.75

Number of Users

63

Monthly User Fee

 

Wastewater Treatment

$22.54

Fixed Sewer Rate charge

$1.27

Water Service

$32.00 estimated

Total Monthly Water & Sewer Bill

$85.57

 

Owner of Auto Hub stated that the Village should increase sales tax to match with Rochelle’s instead of increase of property taxes.

President Whalen stated that the Village needs to find ways to bring in revenue to be able to do maintenance in the streets, tower, and any other maintenance that needs to be done and some ways to produce revenue is property and sales tax.

Trustee Salsbury stated that he is against increasing property taxes.

President Whalen stated that Rochelle has put some interest in supporting the business development in the Village but we have to put in some effort into creating some revenue.

Trustee Long stated that he would recommend that the Village compare sales tax with other communities.

Trustee Rhoads stated that if the Village decides to go with the Business District route it would be less costly for residents if they charged the monthly debt service charge to all resident in the Village.

Sparber stated that this would bring the cost down to at almost  half which would make the amount resident would have in monthly debt charge about $15.00 per resident.

There was discussion amount the board members and residents on going with all residents paying debt charge or just the 63 homes that will affected with this project. It was decided that this might be an option but the board would like to research this more and pursue with applying for the CDAP grant that Ellen Burgeson will be preparing to submit.

President Whalen stated that the presentation given by Baxter Woodman would be available for pick up at Village Hall for anyone interested in reviewing the presentation.

A follow up meeting was scheduled for March 19, 2014 at 7:00pm to further discuss the options in funding the sewer project.

A motion was made at 8:42pm to adjourn by Trustee Long, seconded by Trustee Rhoads. All in favor say I. All I’s.

Minutes taken and prepared by Village Clerk Patty Moreno.



Posted: 3/17/2014 | Updated: 6/14/2014