03/15/2004 Meeting Minutes - Laserfiche WebLink

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Philip M. Brdt, Diredor of Finance and Economic Development Clarification ofMinutes ofMarch 22, 2004 occur in a vacuum or out of the proper context. He stated that if one were to look at debt, one needs to look at the corresponding revenue that is generated to retire that debt. Mr. Brett tried to diplomatically disabuse anyone of the notion that the Mayor or his administration was anything but debt adverse. Mr. Brett directed the conversation to the summazy of debt provided on page 164 of the budget and went over the chart showing that portion of debt for which general obligation debt is used, those portions of debt for which special assessments are used and those portions of debt for which a combination of special assessments and T.I.F. revenues are used. W. Brett pointed out that with the construction of the fourth Progressive Building, the revenues generated by the T.Y.F. that had been so painstakingly negotiated by the Mayor with Progressive could be expected to generate an additional $125,000 per annum. Mr. Brett pointed out that with these additional revenues expected to come on line in 2006, the most that the Village would have to look toward subsidizing the debt service anticipated on the S.O.M. Center Road widening project was $75,000 to $150,000 for perhaps one or two years. Mr. Marquardt asked where these additional funds would come from. Mr. Brett suggested that they would come from a transfer from the General Fund to the Bond Retirement Fund. Mr. Marquardt seemed to be surprised that the Village would transfer money from an operating fund to the debt service fund. Mr. Brett was surprised at Mr. Marquaxdt's concern inasmuch as just the prior year he had taken exception to the possibility that the Village may have been covering operating expenses with debt service. A feaz that Mr. Brett had pointed the year before had been ungrounded. Mr. Brett pointed out that the Village had on several occasions in the past transferred money from the General Fund to either the General Bond Retirement Fund or to a specific Capital Improveznent Fund. Mr. Marquardt seemed quite surprised at this despite the fact that the most recent occurrence of this was in 2002 when $700,000 was transferred from the General Fund to the Bond Retirement Fund in order to retire after four years the entire debt for Parkview Pool. In subsequent discussions, Mr. Brett pointed out that it has been the Mayor and his administration's goal to limit as much as possible the debt incurred by the Village. Mr. Marquardt raised the issue of how a capital expenditure such a Police Station would be paid for. Mr. Brett explained that such a discussion would be similar to the one that surrounded the construction of the Fire Station and that the debt for a Fire Station was purely General Obligation Debt subject to the same conditions that General Obligation Debt have always been subject to. Mr. Marquardt questioned what methods could be used to fund the construction of a Police Station and W. Brett stated that a special levy ' was one vehicle and the allocation of existing inside millage between the General Fund and the General Bond Retirement Fund would be another option and that there was essentially no direct link between debt funded by non-tax revenue and capital improvements funded by General Page 4 of 6