Throughout the years the Village has utilized Special Assessment Funds as a method to finance the construction of some local improvements.  The cost of a Special Assessment is spread between land owners who benefit from the project, and the Village for the portion that is a public improvement.  The contractor is paid by the Village when the work is completed and the participating residents are invoiced each year for ten years for their portion of the calculated principal and interest.  If the project costs were to come in under budget, residents would be entitled to a partial refund.  However, over the past three decades the Village’s special assessment projects have ended up coming in at or slightly more than budget once construction began.  In order to protect the Village’s position over the years, any remaining special assessment fund balances due to interest earned and administrative fees charged has been transferred to Fund 905 to cover cost overruns or non-payments by residents. 

During 2018, the last of the Village’s Special Assessment Funds was paid off and closed (Fund 985 – Lynwood Utility).  Staff recommends that the residual balance of $244,741.17 in Fund 985, Lynwood Utility be transferred to the Water and Sewer Fund.  This balance is from a portion of the project’s invoices that were paid out of the Water & Sewer Fund and not reimbursed by the residents’ payments received in Fund 985.

Since the Village no longer has any current Special Assessment Funds, Staff also recommends that the remaining monies in Fund 905 be transferred to capital project funds.  In reviewing files of prior completed Special Assessments, approximately 90% were for paving and sidewalk projects and 10% were for water and sewer projects.  The remaining balance in Fund 905 currently totals $347,858.35.  Staff recommends that 90% or $313,072.52 of the remaining balance be transferred to the Municipal Parking Fund to help fund the proposed projects outlined in Phase One of the recent Parking System Improvements study.  The remaining 10% or $34,785.83 is recommended to be transferred to the Water & Sewer Fund.

Recommendation

It is recommended that the Village Board approve the following transfers: