Construction Projects

Introduction

The Village annually completes internal capital analysis and review of capital needs for water, sewer, roadway and public facilities. The Infrastructure Commission and the Public Works and Water Committee review various capital improvement processes and have focused on underground infrastructure including water and sewer system improvements, and how those improvements may coincide with future roadway maintenance plans. Recent discussions by the Finance Committee, Public Works & Water Committee and the Infrastructure Commission have expanded that analysis to also incorporate other non-distribution system related infrastructure projects for a complete capital and operations outlook for the capital, water-sewer, and roadway funds for the next five years.

The Village Financial Cycle

The Village utilizes a fund accounting system to identify the resources necessary to operate the Village and maintain its capital assets. As part of this system, the Village completes an annual financial cycle designed to plan how funds will be spent during the year, manage and track revenues and expenditures while that plan is in place and report on final outcomes once the year ends.

Fund Accounting

The Village utilizes fund accounting, a system for recording resources whose use has been limited by the donor, grant authority, governing agency, or other individuals or organizations or by law. A fund consists of a self-balancing set of accounts and each are reported as either unrestricted, temporarily restricted or permanently restricted based on the provider-imposed restrictions. For the purposes of capital improvements, the Village has three fund accounts which may typically be used.

Capital Improvement Fund (310)
The Village’s Capital Fund is the broad capital improvement and includes capital items such as the purchase of vehicles, building improvements, machinery/equipment, computer hardware and software, and other capital improvement purchases. Revenues come from property taxes, proceeds from the sale of general fixed assets and other tax funding.

MFT & Roadway Improvement Fund (370/375)
The Village's Roadway Improvement Fund encompasses all maintenance and capital improvements for the Village’s roads. Revenues come from the 2016 Road Referendum and from funds received from the State of Illinois’ Motor Fuel Tax (MFT) Funds.

Water-Sewer Fund (510/515)
Village’s Water and Sewer Fund is a self-supporting enterprise fund that encompasses maintenance, repair and improvement to the Village’s water and sewer infrastructure including water main, water production, water storage, sanitary sewer and storm sewer collection systems. The fees collected from the water-sewer rate per 1,000 gallons on resident’s water bills are used to support both water and sewer infrastructure projects.

Project Prioritization

Project prioritization is determined from a variety of factors that are dependent upon the specific project under consideration. Factors under review for each project may include the following

Capital Improvements to Village properties, facilities, machinery & equipment and other general fund improvements are evaluated on an annual basis through interdepartmental coordination. Needs are assessed and prioritized through departmental requests, and the Village’s strategic plan.

Projects are prioritized based upon availability funding, including grant funds if available.