S-1031 - 01/28/2003 - BUDGET - Ordinances Supporting Documents+� r
VILLAGE OF OAK BROOK
Village Board Transmittal Memorandum
Date: January 23, 2003
To: Village President and Board of Trustees
From: Darrell Langlois 9111--
Recommendation: That the Village Board approve the attached ordinance authorizing loans
from the General Corporate Fund to the Sports Core Fund.
The current ordinance authorizing loans from the General Corporate Fund to the Sports Core Fund
expires on January 31, 2003. The following describes the authorizations last given, as well as updates
the Village Board on the loan activity for the current year.
The prior ordinance authorized a consolidated loan of up to $1,015,000 in order to fund capital and
operating needs of the Sports Core dating from 1996 -2001. During November and December,
additional loans totaling $125,0001 were needed in order to fund operating expenses at the Sports Core.
This shortfall is due primarily to weather - related factors having a significant impact on golf operations
as well as the debt service requirement for the Food & Beverage operations. Accordingly, I am
requesting that the loan amount authorized for this purpose be increased to $1,140,000 to cover this
additional amount. Per the 2003 -2007 Five -Year Financial Plan, repayment of this loan is projected to
begin in 2005.
It should be noted that the actual cash shortfall for 2002 was $80,000 higher than the amount being
authorized. Consistent with my January 14, 2003 memorandum regarding the status of the General
Corporate Fund's six month cash reserve and Sports Core Fund operating deficits, it is recommended
that Golf Surcharge funds be utilized to finance this additional amount. Since the loan of $80,000 is
within the same fund (golf surcharge is part of the Sports Core Fund), no formal ordinance action is
required. However, I wanted to make the Board aware as to how the additional amount is proposed to
be financed.
The current ordinance authorized a loan of up to $1,298,300 in order to provide funding for the golf
clubhouse expansion project and a loan of $125,500 for the pool deck replacement project in advance
of receipt of the proceeds from the sale of the Westchester Park property. Since the proceeds from the
sale have not yet occurred, I am also requesting that these authorizations be extended for an additional
one -year term.
' Formal notice of these loans was given to the Village Board on December 10, 2002, and this amount was also
included in the 2003 Municipal Budget
scloan2003 doc /)N
To date, approximately $148,900 of expenses have been paid for engineering and subdivision work in
Westchester Park. Since the loan amount authorized for this purpose last year was $134,700, it is
necessary that the amount be increased to reflect the additional 2003 expenditures. After exhausting
debt proceeds as well as residual funds from the sale of the 31s' right -of -way, additional expenses of
$41,300 were paid for the Bath and Tennis clubhouse project during 2003. This authorization has been
included in this ordinance.
All of the projects included in this ordinance that will utilize Westchester Park real estate proceeds as a
funding source total $1,614,000. This amount is less than the current appraised value of the property.
We anticipate selling the three residential lots during the first half of 2003.
Please let me know if you have any comments or questions.
scloan2003 doc
7. A. To address this encroachment, the Attorney for the applicant has proposed
that the Village consider a license agreement to permit the fence to remain in
its current location. To protect the interests of the Village, the proposed
agreement provides that upon written receipt of a written request from the
Village, Oak Brook Club would remove the fence within ninety (90) days.
Village Attorney Martens has reviewed the proposed license agreement.
President Bushy added that the Oak Brook Club could have achieved the
same goal by replacing sections of the fence at intervals, but that would not
achieve as aesthetic a look as replacing the whole fence at one time. The
Oak Brook Club chose to go through the lengthy process of seeking this
variation in order to achieve a more cohesive look.
Motion by Trustee Savino, seconded by Trustee Aktipis, to concur with the
recommendation of the Zoning Board of Appeals to approve the request from
the Oak Brook Club of a variation to accommodate the reconstruction of an
existing six -foot high, solid wood stockade fence that is located along a
portion of the perimeter of the property and approve the license agreement
with the Oak Brook Club and authorize the Village Attorney to draft the
necessary documents for final consideration at the February 11, 2003 Village
Board meeting. ROLL CALL VOTE:
Ayes: 6 - Trustees Aktipis, Caleel, Craig, Korin, Miologos and Savino.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
8 ACTIVE AGENDA (Items for Final Action
A. CONFIRMATION OF APPOINTMENTS: None.
B. ORDINANCES & RESOLUTIONS:
1) ORDINANCE 2003 -BU -S -1032, "AN ORD
A LOAN TO THE SPORTS CORE FUND"
ACTIVE AGENDA
UTHORIZING 03 -BU -S -1032 -
SPTS COR LOAN
The current ordinance authorizing loans from the General Corporate
Fund to the Sports Core Fund expires on January 31, 2003. The prior
ordinance authorized a consolidated loan of up to $1,015,000 in order to
fund capital and operating needs of the Sports Core dating from 1996-
2001. During November and December, additional loans totaling
$125,000 were needed in order to fund operating expenses at the Sports
Core. This shortfall is due primarily to weather - related factors having a
significant impact on golf operations as well as the debt service
requirement for the Food & Beverage operations. Finance Director
Langlois requested that the loan amount authorized for this purpose be
increased to $1,140,000 to cover this additional amount. Per the 2003-
2007 Five -Year Financial Plan, repayment of this loan is projected to
begin in 2005.
VILLAGE OF OAK BROOK Minutes Page 9 of 18 January 28, 2003
A'W
8 B. 1) The actual cash shortfall for 2002 was $80,000 higher than the amount
being authorized. Consistent with Finance Director Langlois' January
145 2003 memorandum regarding the status of the General Corporate
Fund's six month cash reserve and Sports Core Fund operating deficits, it
is recommended that Golf Surcharge funds be utilized to finance this
additional amount. Since the loan of $80,000 is within the same fund
(golf surcharge is part of the Sports Core Fund), no formal ordinance
action is required. The current ordinance authorized a loan of up to
$1,298,300, in advance of receipt of the proceeds from the sale of the
Westchester Park property, in order to provide funding for the golf
clubhouse expansion project and a loan of $125,500 for the pool deck
replacement project. Since the proceeds from the sale have not yet
occurred, Director Langlois has also requested that these authorizations
be extended for an additional one -year term.
To date, approximately $148,900 of expenses has been paid for
engineering and subdivision work in Westchester Park. Since the loan
amount authorized for this purpose last year was $134,700, it is necessary
that the amount be increased to reflect the additional 2003 expenditures.
After exhausting debt proceeds as well as residual funds from the sale of
the 31" right -of -way, additional expenses of $41,300 were paid for the
Bath and Tennis clubhouse project during 2003. This authorization has
been included in this ordinance.
All of the projects included in this ordinance that will utilize Westchester
Park real estate proceeds as a funding source total $1,614,000 This
amount is less than the current appraised value of the property. Staff
anticipates selling the three residential lots during the first half of 2003.
Trustee Savino expressed concern about the use 'of the Golf Surcharge
Fund of $80,000 being used when the golfers were told the funds were to
be used for the betterment of the golf course. He suggested that in order
to keep faith with the golfers that the $80,000 be used from the General
Fund rather than the Golf Surcharge Fund. Golf Club Manager Trey
VanDyke explained that the funds are to be borrowed and will be repaid
and will not affect any current projects to be funded by the Surcharge
Fund.
Trustee Miologos agreed with Trustee Savino and felt that the Golf
Surcharge Fund not be used for this. She expressed concern about the
deficit in general. Finance Director Langlois recognized that budget
projections are based on an average year without an excessive amount of
inclement weather. He commented that the Golf Club did not meet
projections because of weather related issues.
VILLAGE OF OAK BROOK Minutes Page 10 of 18 January 28, 2003
Flo
8 B. 1) He added that operationally the whole Sports Core broke even, but by
adding debt service to the numbers there was a shortfall. Discussion
ensued relative to the budget process and how projections are made.
Trustee Konn reiterated that the Sports Core needs to be self - sufficient.
Finance Director Langlois also reiterated that previous Boards made the
decision that the Sports Core debt service would not be a part of their
annual budget, but since the policy of this Board required that it be part
of the annual budget, the self - sufficiency goal could not be realized until
the debt service is paid off in 2007. Trustee Korin stated she felt that the
Board needs to change how the Sports Core is operated in order to
achieve self - sufficiency. She feels that the General Fund cannot keep
paying for the Sports Core activities and recommended that the Board
should analyze the activities of the Sports Core and their costs.
Trustee Savino stated the Five -Year Plan has been in place and that the
benchmarks that had been set by the consulting firm Gladry and Pullan
are being met. President Bushy suggested removing the golf
memberships because they are costly and the golfers pay a one time fee
` and play as much golf as possible. She also described the history of the
referendum to allow the purchase of the property and the philosophy as to
how the Sports Core would be funded which drove the direction of the
facility. Trustee Korin emphasized that she felt it was time to change the
direction and analyze how the Sports Core could break even.
Trustee Savino suggested the Board must deal with what was before
them and set aside another time to discuss the Board's concerns.
Discussion ensued as to which fund the loan would be charged against.
Trustee Caleel noted the immediate need to transfer funds and since the
Board is not satisfied with the Sports Core performance to consider a
Committee -of- the -Whole meeting to discuss this issue.
President Bushy asked if it is the Board's goal to change the cost
structure this year. Trustee Craig noted that the Bath & Tennis Club has
done very well this year and it should be given a chance. Finance
Director Langlois explained that it is the debt service of the Sports Core
that causes the deficit of the Sports Core and it will come to an end in the
year 2007 and it could be self - sufficient at that time.
VILLAGE OF OAK BROOK Minutes Page 11 of 18 January 28, 2003
0
8. B. 1) Motion by Trustee Craig, seconded by Trustee Aktipis, that the Village
Board approve Ordinance 2003 -BU -S -1032, "An Ordinance Authorizing
a Loan to the Sports Core Fund." ROLL CALL VOTE:
Ayes: 5 - Trustees Aktipis, Caleel, Craig, Miologos and Savino.
Nays: 1 - Trustee Korin.
Absent: 0 - None. Motion carried.
Motion by Trustee Savino, seconded by Trustee Aktipis, that the Board
use the proceeds from the Westchester Park sale to reimburse the Golf
Surcharge Fund $80,000.00 after the General Fund has been reimbursed.
Trustee Miologos amended the motion to include that the Board use the
proceeds from the Westchester Park sale to reimburse the Golf Surcharge
Fund of $80,000.00.
Both concurred with the amended motion. VOICE VOTE: Motion
carried.
2) RESOLUTION 2003 -TX- PRPTY -EXP -R -828, "A RESOLUTION 03 -TIC- PRPTY -EXP-
R- 828 -SALE OF
AUTHORIZING THE SALE OF SURPLUS PUBLIC REAL ESTATE SURP PUBL RL
SLOTS 1, 2 AND 3 OF THE SPORTS CORE/WESTCHESTER PARK EST - SPRTS
SUBDIVISIONZ COSUBD(uHSTR
PK
Resolution 2003 -TX- PRPTY -EXP -R -828, declares Lots 1, 2 and 3 of the
Sports Core /Westchester Park Subdivision as surplus public real estate
and authorizes the staff to sell these lots.
Village Attorney Martens indicated in Section 5 that the Resolution has
been amended to include "that the Illinois Municipal Code provides that
the corporate authorities may accept any contract proposal for purchase
of one or more of the lots as determined by them to be in the best interest
of the municipality by a vote of two- thirds of the corporate authorities
then holding office, but in no event at a price less than 80% of the
appraised value."
The procedure for the sale of these lots is set forth in Section 4 of the
resolution. The proposed process is as follows:
• The Village offers to sell these lots at not less than the appraised
value.
• On a date certain, (Wednesday, March 12, 2003, is the suggested
date) interested parties submit sealed offers to enter into a real
estate sale contract with the Village at a proposed purchase price.
VILLAGE OF OAK BROOK Minutes Page 12 of 18 January 28, 2003
M,
.r
ORDINANCE 2003 -BU -S- 1032
ORDINANCE AUTHORIZING A LOAN
TO THE SPORTS CORE FUND
WHEREAS, Ordinance 2002 -BU -S -1008 authorized a consolidated loan of not more than
$1,015,000 from the General Corporate Fund to the Sports Core Fund in order to fund capital projects and
operating needs of the Sports Core; and
WHEREAS, an additional sum of $125,000 is needed to provide for operating and capital needs of
the Sports Core, and
WHEREAS, Ordinance 2002 -BU -S -1008 authorized a loan of not more than $1,298,300 in order
to fund the golf clubhouse expansion project, a loan of not more than $125,500 in order to fund the pool
deck replacement project, and a loan of not more than $134,700 in order to fund engineering and
subdivision expenses in Westchester Park, with all three loan authorizations expected to be repaid with
the proceeds from the sale of certain surplus public real estate in Westchester Park, and
WHEREAS, the amount of the loan authorized for engineering and subdivision expenses in
Westchester Park is required to be increased to $148,900, and
WHEREAS, the sale of the surplus public real estate in Westchester Park has not yet occurred
which necessitates extending these loan authorizations for an additional one -year term, and
WHEREAS, an additional loan authorization of $41,300 is needed in order to fund remaining
expenses for the completion of the Bath and Tennis Clubhouse expansion project, with this loan expected
to be repaid with the proceeds from the sale of the surplus public real estate in Westchester Park;
NOW, THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows
Section 1 That the preamble hereinabove set forth is hereby adopted as though fully set forth
herein.
Section 2: That a consolidated loan of not more than $1,140,000 from the General Corporate
Fund to the Sports Core Fund is hereby authorized in order to fund capital projects and operating needs of
the Sports Core.
Section 3 That a loan of not more than $1,298,300 from the General Corporate Fund to the
Sports Core Fund is hereby authorized in order to fund the golf clubhouse expansion project
Section 4- That a loan of not more than $125,500 from the General Corporate Fund to the Sports
Core Fund is authorized in order to fund the pool deck replacement project.
Section 5 That a loan of not more than $148,900 from the General Corporate Fund to the Sports
Core Fund is hereby authorized in order to fund engineering and subdivision expenses in Westchester
Park
Ordinance 2003 -BU -S -1032
Authorizing a Loan to the
Sports Core Fund, Page 2
Section 6- That a loan amount of not more than $41,300 is authorized to fund remaining
expenses for the completion of the Bath and Tennis Clubhouse expansion project.
Section 7- That the loan authorized in Section 2 hereof shall be treated as revolving loans The
Finance Director is hereby authorized to draw on the principal amounts on an as- needed basis and to
repay the outstanding balances as funds are made available
Section 8 That any unpaid balance on these loans will be due and payable on January 31, 2004
Section 9 That all ordinances or resolutions, or parts thereof, in conflict with the provisions of this
ordinance be and are hereby repealed
Section 10: That this ordinance shall be in full force and effect from and after passage and
approval pursuant to law.
PASSED THIS 28th day of January, 2003
Ayes Trustees Akti is, Caleel, Craig, Miologos and Savino
Nays
Trustee Korin
Absent None
Abstain. None
APPROVED THIS 28th day of January, 2003
>I
�,iy, ♦mot e4.y.., .�+ �},. J'_ �� �_� t�7
Approved as to Form.
Village - ttorney
ord /budget doc
Village Presint
Published
Date
Not Published XX
Paper