By Jason Crane
At the Aurora city government meeting Tuesday, through the Zoom video conference platform, the City Council unanimously approved a $406,358,000 balanced budget for 2021.
The meeting can be viewed on the City’s YouTube page: https://www.youtube.com/watch?v=Eygew_SaQfU
There were no speakers for the budget public hearing, or the three minutes allowed by those who sign up.
The more than 1,000-page budget can be viewed on the City’s website at: https://www.aurora-il.org/871/Budget
Retiring alderman-at-large and chairman of the Finance Committee, Robert O’Connor, explained the $444,600,000 budget, including an amount of $38,200,000 for carry-overs resulting in the new money amount of $406,358,000.
O’Connor thanked members of the Finance Committee, and department heads of the city of Aurora government.
“It is essentially a balanced budget not withstanding the difficulty of the year and how we had to look at our revenue.
“It is going to be in the end, I think a very balanced budget.”
Seventh Ward alderman Scheketa Hart-Burns praised the Finance Committee and O’Connor’s work.
“He has done a stupendous job,” she said.
“Bob is a numbers guy. He can quote that stuff out of his head!
“Not only that, he is a great alderman, he has served all these years.
“I’m happy that we do have a balanced budget!”
Ninth Ward alderman Edward Bugg said, “I’d also like to thank Mr. (Marty) Lyons and his whole team.
“This, as everyone knows, was a very difficult year. To look at the numbers, to see what was going to stay and what was going to go, they really did a tremendous job during this time.
“Sitting next to alderman O’Connor these several years has been a pleasure.
“To sit next to him, to learn from him.
“We are definitely not twins, but often when you look at our legal pads sitting next to each other, we had the exact same comments, on the exact same agenda items and issues.
“Thirty-plus years leading us, he is a big reason why each and every year we come out with a balanced budget, one that we can send over to the citizens and say that we are going forward in a truly fiscal, sound, manner.
“Alderman O’Connor, it’s been an honor and a pleasure to work with you and to sit with you. Thank you,” Bugg said.
Mayor Richard Irvin said, “Bob, you’re going to be leaving some big shoes to fill having been the person running the Finance Committee for so many decades.
“You left a strong foundation in making sure we had a balanced budget year after year after year.
“In these hard times in all the municipalities throughout the country, dealing with this pandemic. Not many cities can say they are in the financial position that the city of Aurora is in.
“Thank you for the strong foundation, thank you for your leadership, and thank you for yet another balanced budget in the city of Aurora!”
• Aurora communications director Clayton Muhammad said as of noon, Tuesday there were 66 applicants for the Aurora’s Citizen Review Board, 64 from Aurora and two from other communities. He added applicants must be Aurora residents to be on the Board.
The application period ends noon December 22.
• Approved was a resolution appointing Wanda Malone to the Advisory Commission on Disabilities. In October 2018, the City Council approved the creation of a new advisory committee focused on better supporting persons with disabilities in Aurora.
The nine-member commission is in need of new members. Wanda was recommended by other members on the Commission, and will represent Ward 10.
• Approved was a resolution accepting the improvements and 20% maintenance security for the Salvation Army facility at 550 Redwood Drive.
• Approved, 9-2, was a resolution authorizing the execution of an exclusive listing agreement with JBSC, INC. D/B/A Caton Commercial Real Estate Group.
First Ward alderman Emmanuel Llamas and 10th Ward alderman Judd Lofchie voted against it.
Lofchie had concerns about some of the fees stating eight percent for a sale is a little high and very few receive commissions on lease renewals.
The city government’s plan to hire Caton with a one-year agreement is to build on the momentum of recent downtown development by attracting new users/tenants into the core of the City that provide services and create interest for existing and new residential and office users.
Caton is working on 100% commission. Invest Aurora began discussions with the group about a year ago.
The four properties covered in this listing agreement are: 35 W. New York Street, 5 E. Downer Place, 33 S. Broadway, 51 E. Galena Boulevard.
• Approved was a resolution authorizing the Chief of Police the authority to sign a yearly updated agreement for use of an outdoor firearms range between the Kendall County Sheriff’s Office (KCSO) and the Aurora Police Department (APD).
• Approved was an ordinance levying taxes for the city of Aurora government for the Fiscal Year January 1, 2020 Through December 31.
The city obtains the resources for its operations through a variety of sources. The annual property tax levy provides a major share of revenue. Approximately 20% of the revenue for all city funds and about 40% of the revenue for the General Fund.
The proposed city tax levy totals: $83,477,500, including city debt service. It is $2,508,537 or 3.1% higher than the 2019 levy. The major source of this increase is a $2.89 Million increase in the Police/Firefighter Pension Fund levies. This increase is approximately $700,000 less than the actuarially recommended increase of $2.29 Million as recommended in the 2020 Actuarial Report from the City’s actuary Foster and Foster.
The total of the pension components of the levy will increase from $30,794,820 as extended to $33,684,500 or by $2,889,680 (9.4%).
• Approved was a resolution authorizing the director of purchase cleaning machine from EJ Equipment 6949 N. 3000 E. Rd. Manteno, IL 60950 in the amount of $390,639.00.
• Approved was a resolution to accept the proposals received for the 2021 Water & Sewer Division Emergency Repair Program.
• Approved was a resolution to contract with MDI Access Data Center Solutions (“MDI”), 123000 S. Keeler Ave, Alsip, IL 60803 for UPS Battery Equipment and Maintenance in various City facilities in an amount totaling $103,635.00 for five years.
• Approved was a resolution adopting unit price bids for the purchase of various water and sewer repair materials for the 2021 calendar year.
• Approved was a resolution authorizing and approving a business development district sales tax sharing agreement with Pacific Square, DE LLC and authorizing and approving the use of business district taxes to reimburse Pacific Square, DE LLC for eligible costs in redeveloping Pacifica Square Shopping Center.
City staff members seek to reimburse the developer for their eligible costs in redeveloping Pacifica Square Shopping Center. The business district development district tax sharing agreement is the mechanism that allows the City to use the business district taxes to reimburse the developer for their eligible costs in redeveloping the shopping center.
This resolution is the final step in a series of Council actions that created mechanisms that enables the City to impose tax on customers of merchants within the center to help defray the significant costs of redevelopment of the center. This is one leg of a three-tier approach of an incentive package that keys off new dollars created by virtue of the shopping center’s redevelopment. (In February when the Center was purchased, occupancies were running about 40%; they are now above 90%).
The City previously passed ordinances creating the Business Development District and imposing a Business Development District Tax. On June 11, 2019, the City approved Ordinance (O19-225) that proposed the plan for creation of a Business District and on August 27, 2019 designated the Aurora Business District no. 1 with ordinance O19-057. With its formation, on the same date the City approved the Business District Retailer’s Occupation Tax (O2019-058) that allows for the imposition of up to a 1% tax imposed in 0.25% increments. On September 24, 2019, the City amended O2019-058 to set the tax imposed at the rate of 0.25% (O2019-063). This final resolution enables the City to use the Business District Taxes to reimburse the Developer from taxes specifically imposed within the Business District.
As recently reported, the developer (Pacific Square, DE, LLC) has made significant improvements to the shopping center and has created a unique brand that has garnered much attention with their countercyclical retail success. They have plans to add additional structures to create more traffic and increased sales that will enhance the retail, shopping and dining experience for its growing patronage. This resolution is a key element to approve a financial mechanism that has facilitated this redevelopment.
The resolution will enable the developer to continue to meet its obligations as part of a financial structure that is the foundation OF the success of the Pacifica Square shopping center.
• Approved was a resolution establishing the maximum number of Class A: Package Sales (Beer and Wine) and Class B: On-Site Consumption licenses (unofficially related to the application from Casa Blanca Supermercado, Inc., at 770 Claim Street, Aurora.
• Approved was a resolution accepting plumbing service bids for the Water and Sewer Maintenance Division.
• Approved was a resolution Authorizing Well Maintenance Services for Well No. 129 for the Water Production Division.
The total estimated project cost of all proposed work to restore Well No. 129 to normal operational status is $54,500.00.
• Approved was a Resolution Authorizing a Scheduled Inventory Reagent Replacement Plan with the HACH Company for the Water Production Division.
• Approved was a resolution authorizing purchases from IDEXX Laboratories, Inc., for budget year 2021 for the Water Production Division.
• Approved was a resolution Ratifying payment to Rush Truck Centers of Illinois for the replacement of the main engine in Truck 6 for the Aurora Fire Department in the amount of $59,645.00.
• Approved was a resolution to adopt unit prices provided by respondents for 2021/2022 Electrical Materials and Supplies for the Electrical Division.
• Approved was a resolution to contract with MDI Access Data Center Solutions (“MDI”), 123000 S Keeler Ave, Alsip, Ill for UPS Battery Equipment and Maintenance in various City facilities in an amount totaling $103,635.00 for five years.
• Approved was an ordinance Levying Certain Special Service Area Taxes for the Fiscal Year January 1, 2020 through December 31, 2020. (Special Service Areas Number One, Twenty- Four, Forty-Four, Sixty-Three, Sixty-Five, Sixty-Six A, Sixty-Six B, Sixty-Six C, Sixty-Six D, Sixty-Seven, Seventy, Eighty-Eight, Ninety, and One Hundred Forty-One.
• Approved was a resolution authorizing the purchase of Bulk Road Salt in the amount of $45.25 per ton for the 2020-2021 winter season from Cargill Incorporated, North Olmsted, Ohio through the State of Illinois Joint Purchasing Agreement.
To obtain City Council approval for the purchase of bulk rock salt in the amount of $45.25 per ton from Cargill Incorporated for the Division of Street Maintenance under the State of Illinois Joint Purchasing Agreement bid for the 2020-2021 winter season.
The bulk rock salt is used to melt snow & ice from City streets, making them safer for vehicular traffic. We have been dividing our salt purchase between DuPage County Department of Transportation and the State of Illinois Joint Purchasing Agreement. By dividing our road salt orders between two government agencies soliciting bids, we hope to have two different suppliers. Historically this has provided us an alternate source should one of the providers be unable to make timely deliveries.
The City anticipates purchasing 7,500 tons of bulk rock salt at a price of $45.25 per ton for the 2020-2021 winter season from Cargill Incorporated Salt Division, North Olmsted Ohio.
• Approved was a resolution Authorizing Purchase of Property/Boiler Machinery, Fine Arts, Crime, Cyber Liability, Excess Cyber, General Liability/Law Enforcement/Auto Liability, Excess Liability, Excess Workers Compensation, Liquor Liability, Special Events Liability and Drone Liability insurance policies for the period of December 31, 2020 through December 31, 2021.
To obtain approval of the proposal from broker Hub International Midwest Limited for Property/Boiler Machinery insurance from Chubb Insurance Company, Fine Arts Insurance from Hanover Insurance Company, Cyber Liability Insurance from AIG, Excess Cyber from AxisCrime Insurance from Travelers, Excess General Liability/Law Enforcement/Auto Liability Insurance from Allied World National Assurance Company, Hallmark Insurance Company and Great American Insurance Company, Excess Workers Compensation insurance from Safety National Casualty Insurance, Liquor Liability insurance from Lloyds of London, Special Events Liability from Cincinnati Specialty and Drone Liability from American Alternative Insurance Company for the period of December 31, 2020 through December 31, 2021.
The City has historically maintained these types of insurance coverages as part of its overall insurance and risk management program including self-insured retention levels. For 2020 the City purchased through broker Hub Property/Boiler Machinery and Inland Marine from Chubb, Crime coverage from Travelers, Excess Workers Compensation Insurance from Safety National, Excess General Liability/Law Enforcement/Auto Liability Insurance from Allied World National Assurance Company, Excess Liability from StarStone National Insurance Company and Endurance American Insurance Company, Cyber Liability Insurance from AIG, Fine Arts coverage from Hanover Insurance, Liquor Liability from Lloyds of London, Special Events Liability Insurance from Cincinnati Specialty and Drone Liability Insurance from AAIC. 2020 total program cost including broker service fee was $987,387.00.
The City’s authorized broker Hub International reviewed our existing program and solicited additional market bids beyond renewal of the existing program. Hub’s marketing summary is attached. In light of the worldwide pandemic and its adverse and ongoing effect on the economy and insurance markets for these coverages, the city’s total overall program cost has increased approximately 17% over 2020 for 2021. Also contributing adversely to our renewals are increased risk and claims activity in nationwide markets for public safety liability coverages which have resulted in increased premiums for excess liability and excess workers compensation for municipalities and their police and fire personnel in 2021. Similar increases in Cyber and Crime premiums can be attributed to increases in cybersecurity attacks and criminal fraudulent activity involving both the public and private sectors. Attached is the 2020-21 Program Summary. As a result, all of the listed carriers are recommended for 2020-2021 program renewal. Doing so will maintain the three layers of excess liability coverage of $35M above the City’s $2M self-insured retention. Also in order to maintain our $10M total Cyber coverage we have to split the coverages into two $5M policies as no carriers including the incumbent AIG would cover more than $5M maximum so we are recommending excess cyber coverage for $5M through Axis. Attached is the 2020-2021 Program SIR structure. Overall, based on the increased renewal premium costs and increased coverage limits for Cyber and Crime coverages, the total cost including broker service fee is $1,158,019.00 as compared to $987,387.00 for 2020, an increase of approximately 17%. Funds for these insurance policies are budgeted for in the Property and Casualty Fund budget.