Hobart transfers funds from 2020 general fund budget surplus
By Kevin Boneske
HOBART – The village board approved a motion Tuesday, March 2, to amend the 2020 general fund and debt service funds.
This includes the transfer of $5,000 from the general fund property tax levy to the debt service fund revenue and another $95,000 from the general fund property tax levy to the capital projects fund revenue.
Board members also approved allocating the $95,000 from the general fund surplus in the capital projects reserve accounts by placing $36,500 in the account to build a new fire station and $58,500 into the unreserved fund balance.
That increased the balances in the reserve accounts to $150,000 for a new fire station and $75,162 in the unreserved fund balance.
Village Administrator Aaron Kramer said the village’s auditors provided a draft of the 2020 audit, which allowed the village to allocate last year’s general fund surplus to several other funds.
Even after transferring $154,507 last year to the capital projects fund, Kramer said the general fund recorded a surplus of $119,126 in 2020.
As a result, he said the general fund had an accumulated surplus as of Jan. 1 of more than $1.78 million, with about $1.46 million being unreserved.
Kramer said the 2020 property tax levy of nearly $3 million was split up by designating about $1.74 million to the general fund, $640,732 to capital projects and $609,598 for debt service.
“Of that (general fund) surplus, we’re going to take $100,000 out and transfer it to capital projects and debt service,” he said.
Kramer said that would leave the village with a general fund surplus of just under $20,000 for 2020.
“Our overall general fund will still be operating in the black,” he said.
Kramer said the debt service fund ended 2020 with a projected deficit of $2,256 primarily due to a lower-than-anticipated Lambeau Field stadium tax refund, while the capital projects fund ended the year with a projected deficit of $49,332.
As a result of the transfer of surplus general fund dollars, he said the debt service fund will show a surplus of more than $2,700 for 2020 with the capital projects fund having a surplus of more than $45,000 for the year.
Kramer said saving money now for the construction of a new fire station will result in the village not having to borrow as much.
When including the amounts available in the capital projects, debt service and general fund, he said village has already designated more than $600,000 for a new fire station, which could costs upwards of $3 million or more.
In addition, Kramer said $85,000 is projected in the 2022 capital budget for engineering and design with $100,000 earmarked for furnishings in 2023 for a new fire station.
“In essence, between this amount and what we’ve sort of budgeted, pre-budgeted, pre-planned, approved in our capital budget, we’re around $750,000 of this project,” he said.
2021 capital projects
In other action, the board approved bids totaling $567,468 for this year’s capital projects, which include repaving Cyrus Road and paving the temporary bypass road for the North Overland Road project.
The total bid award includes $525,841 for MCC, $17,400 for Century Fence and an additional $26,927 for engineering from Robert E. Lee.
Kramer said the village initially planned to do the following:
• Cyrus Drive (bridge to terminus) repaving.
• Paving of temporary road for North Overland project.
• 15 stormwater inlets repaired or replaced in the Thornberry Creek subdivision.
• Patching on Silver Creek.
• Patching on Trout Creek.
However, due to favorable bid results, he said the following projects were able to be added:
• Striping of North Overland Road (Trout Creek to Centennial Centre roundabout).
• North Pine Tree Road (Sunbeam to end of previous project) repaving.
• An additional 15 stormwater inlets repaired or replaced in the Thornberry Creek subdivision.
Even with the additional projects, Kramer said the village still came in under the budgeted amounts to fund the projects with $431,827 available in the capital projects fund, $37,500 in the general fund and $100,000 in the stormwater fund.
After meeting in closed session, the board approved a development agreement with Scott’s Subs Hobart RE, LLC, for the development of a Scott’s Subs in Centennial Centre, located in Tax Increment District No. 1 on approximately 1.3 acres of property at the intersection of Larson Orchard Parkway and Centennial Centre Boulevard.
Kramer said the village’s incentive package in the agreement is $86,280, consisting of primarily a reduction in the price of the land that is being purchased and future incentive payments, based on property taxes collected.
He said the developer is required to construct a facility valued at no less than $500,000 by Jan. 1, 2022.