Presentation on theme: "WELCOME! THE NEXT FIFTY YEARS…. HOA Presidents Road Maintenance Presentation Village of."— Presentation transcript:
WELCOME! THE NEXT FIFTY YEARS…. HOA Presidents Road Maintenance Presentation Village of
HOA Presidents Road Maintenance Presentation Special Thanks to Homeowner Association Presidents. Introduction of the stakeholders who are present tonight. Village of
HOA Presidents Road Maintenance Presentation Village Finances - Annual Budget Revenues: $2.6M Taxes (Sales, Income, Motor Fuel, Telecommunications, etc.) = $2.1M (81%) Non-restricted = $1.3M (Sales = $650K; Income = $500K; Tele = $190K) Restricted = $690K (Infra Sales Tax = $490K; MFT = $200) Fees/Permits/Licenses= $400K (16%) Fines/Penalties= $65K (3%) Miscellaneous= $30K (1%) Expenditures: $2.5M Roads (Paving = $450K; Snow = $310K; Salt = $90K, Maint = $85K) = $946K (37%) Village Hall (Staff; Supplies; Maint)= $595K (23%) Village Security (Sheriff)= $500K (20%) Village Operations (Ins; Acct; Audit; Permits; Mosquito)= $215K (8%) Legal & Engineering (Non-reimbursable)= $149K (6%) Operations, Maintenance, Etc.=$101K(4%) Grants & Donations= $36K (1%) 3 For further information on Village Budgets & Financial Reports visit Villa ge of
HOA Presidents Road Maintenance Presentation Recommended Maint. Program Village-Owned Public Roads Village of Annual Maintenance Life (Yrs) Annual GoalAvg. Annual $ Paving & Patching103.1 miles$2,381,778 Snow RemovalNA$439,692 Parking Lot201/10 year$318,654 Road Drainage miles$90,194 Bridge101/10 year$67,079 Street Signs101/10 year$2,500 Total Avg. Cost$3,299,897
Issue: Recommended Maintenance Of Roads. Recommended Funding. $2.1 M Actual Funding. $800K Difference ($1.3 M ) Issue: Recommended Maintenance Of Roads. Funding Required. $3.3 M Actual Funding. $1.3 K Difference (Funding Gap)($2.0 M ) HOA Presidents Road Maintenance Presentation
Issue: Recommended Maintenance Of Roads. Recommended Funding. $2.1 M Actual Funding. $800K Difference ($1.3 M ) Options to Deal with Funding Gap: 1) Do Nothing Different 2) Further Reduce Other Expenses 3) Reduce the Length of Public Roads (reduce Gap) 3) Alternate – Upgrade all public Roads Over Next 10 Yrs Then Reduce Length by Making Non Thoroughfare Roads Private (Current Gap) 4) Make All Roads Public (Increase Gap) 5) Increase Funding (Road Tax) to Cover Current Gap, Reduced Gap or Increased Gap HOA Presidents Road Maintenance Presentation
Option:(1) Do Nothing Different. Village Roads Continue To Deteriorate. o After Bridges, Parking Lots, Snow Removal and Signs, only enough money left to properly maintain 42K lineal feet of road (less than ½ of thoroughfare roads) o Unable to maintain any non thoroughfare roads o Checker, Cuba, Indian Creek, Long Grove Road, N. Kruger, Old Hicks & Robert Coffin Rd (highest Avg Daily Traffic count) would consume all remaining budget. Deferred Maintenance Increases Long-term Rebuilding Costs thru destruction of base. Village looks shoddy and poorly maintained.
HOA Presidents Road Maintenance Presentation Option:(2) Further Reduce Other Expenses. Total Village Budget = 2.6M. Village Board Has Reduced Expenditures. Further Reductions Will Impact Services o Staff (FTE) Expenses = $540K o Police (Sheriff) Expenses = $500K Village of
HOA Presidents Road Maintenance Presentation Village of Village Operations Comparisons
HOA Presidents Road Maintenance Presentation Option:(3) Reduce Length Of Public Road. Make all Non-thoroughfare Roads Private. o 53,675 LF Of Current 148,321 LF Public Roads. o Reduce Unfunded Gap By $557K. o $1.4 M Unfunded Gap Remains. $557/Family Most Subdivisions (Pre-1980) Do Not Have Mechanisms In Place To Maintain Roads. o Inadequate Covenants, Bylaws & HOAs. o Likely Require Establishment Of SSA’s.
Issue: Recommended Maintenance Of Roads. Recommended Funding. $2.1 M Actual Funding. $800K Difference ($1.3 M ) Option (3) Alternate – Upgrade All Public Roads Over Next 10 Years then Reduce length by making All Non Thoroughfare Roads Private ● Repair and bring up to standard, all public roads 148,321 LF over next ten years. ● Establish thru referendum, a road tax avg.$777/family/year to pay for this with a 10 year maximum sunset. ● At the end of 10 years vacate (turn private) all non thoroughfare roads 53,675 LF ● Maintain remaining 94,646 LF using increased revenues from sales taxes after 2015 when road tax sunsets HOA Presidents Road Maintenance Presentation
Option:(4) Make All Roads Public. Approval By Owners Required. Increases Public Roads Nearly 2.5 Times. o From 148,321 LF To 358,930 LF. Increases Funding Gap to $4.5M o Permanent Road Tax Of $1,745/yr. Contrary To Policy Of Limiting Village Government & Public Roads. Village of
HOA Presidents Road Maintenance Presentation Option:(5) Increase Funding. New Commercial Development (Sales Tax). o Long-term Goal (10 yrs.). Vehicle Stickers ($290 Per Vehicle). o Difficult/Expensive To Enforce. Special Service Areas. o Costly To Establish. o “Backdoor” Referendum – 51% Against. Village-wide Road Property Tax. o Short-term (10 yr. Limit). o $777 Avg. Annual Property Tax. To cover current gap 10 years maximum o $557 Avg. Annual Property Tax to cover reduced gap (only non thoroughfare roads) 10 years maximum. o $2,598 Avg. Annual Property Tax to cover increased gap if all private roads are made public to be reduced but not eliminated after 10 years. The Board has already ruled out this option
HOA Presidents Road Maintenance Presentation Where Do We Go From Here? Distribute information to all homeowners thru HOA Presidents Hold HOA Meetings to explain and discuss challenges and options Ask all homeowners to go on to Village website and express their opinion by selecting the option most acceptable to them: 1. Road tax equal to roughly $777/family /year to fund recommended maintenance off all public roads for maximum 10 years then sunset. 2. Same as above with stipulation that all non thoroughfare public roads be vacated (returned to private) after 10 years. 3. Vacate non thoroughfare roads now and establish a temporary (10 year) road tax equal to roughly $557/family/year to fund recommended maintenance of remaining public roads. Chose most popular option to place on referendum by November for April 2014 ballot.
HOA Presidents Road Maintenance Presentation Discussion… Village of