Good financial results reported in Howard
By Kevin Boneske
HOWARD – Director of Administrative Services Chris Haltom had good financial news for the village board Monday, July 22, related to the Howard’s three utilities, the Village Green Golf Course and the Howard Commons.
“The golf course and Howard Commons are both doing really well,” Haltom said. “June was a good month. I think July is going to be an even better month at Howard Commons, because they weren’t 90 percent (occupied) for all of June, but it started in July.”
For June, which the financial results were better than in previous months, Haltom noted the Howard Commons apartment complex operations reported net income of $34,611.
With more than 90 percent occupancy currently in Buildings A and B, Haltom said the operations will be quite favorable, if the complex continues at this level, to allow for either paying down debt at the time of refinancing or using the funds to help pay for the pavilion.
“We could either use additional money, either to help pay to the TIF District to help fund other projects like the pavilion, or could use it to pay off the debt when we refinance the debt, because all three of the bonds that we’ve issued for the apartment complex, all three will refinanced in the coming years,” he said. “So it could be up to five years on each of those debts, but I believe we were kind of targeting four years to refinance. And if interest rates go down, that could also be a good time to also jump in and refinance.”
The Howard Commons has Buildings A and B open for occupancy with a third building under construction.
In 2017, the board approved borrowing for and bids on the construction of the Howard Commons apartment complex for Buildings A and B.
The village authorized interim financing in 2017 for approximately $10 million and that type of financing had been approved in 2018 for approximately $16 million, prior to authorizing interim financing of $9.71 million this year for Apartment C now under construction.
Located between the YMCA and Meadowbrook Park, Howard Commons was designed as three apartment buildings with 84 units in Building A, 39 units in Building B and 45 units in Building C.
Alliance Management has an agreement with the village to manage and market Howard Commons.
Haltom said the Village Green Golf Course “is having a very good year” with the best financial results since 2011.
“The restaurant is doing well, making money,” he said. “It’s the first time in a long time, so that’s a good thing.”
Through June 30, restaurant revenues were reported at $68,931 with expenses at $51,886 for an income of $17,045.
Haltom’s financial report to the board also noted the golf course’s overall operating income at the end of June was $64,235, compared to $14,749 in income the previous year and operating losses reported in 2014-17 through the first six months.
Results from the village’s utilities, Haltom said, are “not spectacular, but they’re OK.”
“I think I’m going to continue to look at those,” he said. “I don’t think we need a rate increase at this time. I think we’ll just wait and see how the results go for the rest of the year.”
Haltom said both sewer and water revenues are lower this year than in 2018 based on use, which he suspected could be due to the large amounts of rain and less need for watering outside.
“The revenues are down in the water and sewer, and the expenses are up, in a nutshell,” he said. “I know OMNOVA was a big user, and they decreased their use until they sold the plant. We’re not going to get a lot of use out of Nouryon until they’re up and running.”
OMNOVA Solutions this year sold the approximately 80-acre site at 1701 Cornell Rd. to Nouryon Pulp and Performance Chemicals, which indicated in a development agreement with the village the company would continue to use the facility as a manufacturing plant and invest at least $50 million with the property becoming Howard’s ninth Tax Incremental Financing District.