North Cook News

Village of Glencoe Board of Trustees Met Oct. 13

Here is the minutes provided by the board:

I. CALL TO ORDER

The regular meeting of the Finance Committee of the Village of Glencoe conducted virtually in accordance with Governor Pritzker’s Executive Order 2020-07 was called to order by the Finance Committee Chair at 5:30 p.m.

Prior to roll call, Chair Vree stated that pursuant to recently adopted amendments to the Illinois Open Meetings Act (OMA) included in Public Act 101-0640, the Village Board meeting was being conducted as a virtual meeting via Zoom video conferencing software and also being audio recorded and simulcast on the Village’s Facebook page as the Village continues to support social distancing to try to prevent the spread of COVID-19. He stated that a quorum of members of the Board were present via remote access and that Village Manager Phil Kiraly was physically present at Village Hall as required by OMA. The following were in attendance:

Attendee Name	Title	Status
Village Board
Lawrence Levin	Village President	Present
Jonathan Vree	Trustee/Chair	Present
Barbara Miller	Trustee	Absent
Gary Ruben	Trustee	Present
Peter Mulvaney	Trustee	Arrived at 6:15 p.m.
Village Staff
Philip Kiraly	Village Manager	Present
Sharon Tanner	Assistant Village Manager	Present
Nikki Larson	Finance Director	Present
Denise Joseph	Assistant Finance Director	Present
David Mau	Public Works Director	Present
Cary Lewandowski	Public Safety Director	Present
Stella Nanos	Glencoe Golf Club General Manager	Present
Don Kirk	General Superintendent	Present
Jordan Lester	Management Analyst/Deputy Village Clerk	Present

II. PUBLIC COMMENT

There were no comments from the public.

III. CONSIDERATION OF THE MINUTES

Trustee Ruben moved, seconded by Trustee Vree, to approve the following meeting minutes: 1. Board of Trustees - Finance Committee - Sep 15, 2020 6:00 PM

The motion was approved with the following roll call vote:

AYES: Ruben, Vree (2)

NAYS: None (0)

ABSENT: Miller (1)

IV. REVIEW OF MONTHLY FINANCIAL REPORTS

Finance Director Nikki Larson provided an overview of the September 2020 Treasurer’s Report. She reported that property tax receipts are lower than prior year, noting that staff believes a portion of Glencoe residents have taken advantage of the deadline extension offered by Cook Cunty. Sales tax receipts reflect the June 2020 sales month, and while the receipts are lower than the prior year to date, they appear to be recovering from the early months of the COVID-19 pandemic. Director Larson noted that permit revenues are at 50.4% percent of budget and are projected to end the year lower than anticipated. Next, she reported that the Water Fund continues to experience strong performance that is anticipated to continue throughout the remainder of the fiscal year.

Moving to cash flow projections, Director Larson reported that October Personnel Property Replacement Tax (PPRT) distributions are approximately 48% less than what the Village received in October 2019, and staff projects as much as a 28% total decline in PPRT revenue during the State of Illinois’s 2021 Fiscal Year that runs through June 2021. Director Larson added that parking fees have dropped significantly due to the COVID-19 pandemic, with staff projecting an 85% reduction for the remainder of the year. Overall, Director Larson reported that based on the most current information available, staff are projecting that the Village may see an estimated loss of $700,000 in revenue this year. She emphasized that this projection may change based on the many factors impacting revenue streams this year and that staff will continue to update projections as more information becomes available.

Glencoe Golf Club General Manager Stella Nanos then detailed the Golf Club’s September financial report. She stated that the Golf Club continued to experience significant demand for golf play in September, with favorable dry weather contributing to increased levels of demand. Revenues are over budget by approximately $200,000, with rounds year-to-date 5,500 rounds over budget and 8,000 rounds higher than prior year-to-date. General Manager Nanos reported on several events that took place at the Golf Club during September and provided an update on the Golf Club’s process to begin fundraising efforts and next steps in the process, including creation of a fundraising board and beginning the process of seeking donations.

V. MONTHLY REVIEW OF COMMUNITY IMPROVEMENT PROGRAM: STUB YEAR 2020 SCHEDULE

Assistant Finance Director Denise Joseph noted that for the Board’s consideration during the October 15 Village Board meeting is a change order to the Village’s contract with Schroeder & Schroeder for the Village’s 2020 Residential Sidewalk Replacement Program.

Next, Public Works Director David Mau provided the Board with a status update on an emergency water main replacement in the Skokie Lagoons. Director Mau reported that in mid-August, staff discovered a water main leak in the transmission water main located on Cook County Forest Preserve District property west of Forestway Drive and adjacent to the Skokie Lagoons. He stated that following extensive field survey efforts, staff has determined that 1,000 feet of water main replacement is urgently required. Director Mau added that staff hopes to receive permits from the Illinois Department of Transportation and Illinois Environmental Protection Agency by the end of October, with the goal of completing water main replacement by the end of November. He reported that staff intends to bring a change order to the Village’s contract with Mauro Sewer for the Village’s 2020 Water Main Improvement Project to the Board during the November 19 Board meeting. Total costs are anticipated to total between $175,000 and $200,000. Village Manager Kiraly noted that resources are available from the Village’s recent Water Fund bond sale to fund the accommodate the emergency repair.

VI. CONSIDERATION OF TAX LEVY ESTIMATE AND SETTING NOVEMBER 19, 2020 AS THE PUBLIC HEARING DATE OF THE 2020 TAX LEVY

Director Larson reported that each year, staff prepares an estimate of the proposed annual property tax levy for the Village Board’s consideration and approval. Along with the review of the property tax estimate, she added that the Village must hold a public hearing in advance of tax levy ordinance approval. Director Larson stated that staff recommends holding the public hearing for the 2020 tax levy at the November 19 Village Board meeting. Following the hearing, the full property tax levy ordinance will be presented to the Board at the December 17 Village Board meeting to be considered for approval as part of the full budget package for Calendar Year 2021.

Director Larson reported that for Tax Year 2020, collectible in calendar year 2021, the Village’s proposed total levy is $15,300,359. She noted that the estimated levy amount includes the Village, Glencoe Public Library and debt service levies and was established in accordance with the Property Tax Extension Limitation Law (PTELL). Last, she stated that Cook County will ultimately determine the Village’s appropriate levy amount following the finalization of total property equalized assessed value (EAV) in the Village.

Trustees asked several clarification questions pertaining to PTELL and property valuations, directing staff to move forward with setting November 19, 2020 as the public hearing date for the Village’s 2020 tax levy.

VII. REVIEW AND DISCUSSION OF CALENDAR YEAR 2021 DRAFT BUDGET DOCUMENT

Village Manager Kiraly began discussion of the Village’s draft Calendar Year 2021 Budget by providing an overview of the major factors impacting budget development. He reported that the budget reflects the Village’s transition to a calendar year fiscal year and a return to a 12-month budget cycle following the 10-month Stub Year 2020. Next, Manager Kiraly detailed the financial planning challenges posed by the COVID-19 pandemic, speaking to the complexity of developing accurate revenue projections in a rapidly changing economic environment. Of note, he explained that the draft budget proposes modest increases to certain taxes and fees, reductions in department expenditure requests, increased Police Pension Fund financing per actuarial recommendations and continued investment in operational efficiencies. Manager Kiraly stated that staff is particularly seeking the Committee’s feedback on fee and fine recommendations, department budgets and Community Investment Program projects and financing.

Then, Director Larson described major factors impacting the Financial Forecast, which contains projections for Calendar Years 2021 through 2025. The Forecast addresses including necessary infrastructure improvements, adjustments for future state budgets, rising police pension costs, debt financing for infrastructure and fee structures designed in consideration of program costs. She reported that the Forecast also includes updated revenue scenarios, which indicate some of the Village’s potential exposure if State-shared revenue streams were to decline.

Moving to financial policy updates, Assistant Director Joseph reviewed recommended items for change. First, she outlined fund balance policy changes including contingency fund planning and transfer of one-time revenues. Next, she explained the property tax abatement policy and noted that staff recommends that the debt service payment for the Series 2020 General Obligation Alternate Water Revenue Source Bonds (ARS Bonds) be abated and paid from Water Fund revenues, as this bond issue was entirely dedicated to fund Water Fund infrastructure projects. However, Assistant Director Joseph reported that staff recommends that the 2020 Tax Levy (collectible in Calendar Year 2021) for debt service on remaining General Obligation Bonds (including Series 2012A, 2015A, 2016B and 2019A) not be abated. In addition, she discussed funding for the Village’s Police and Fire Pension Funds. Last, Assistant Director Joseph reported that the Village may consider utilizing $250,000 in Intergovernmental Risk Management Agency (IRMA) excess surplus funds to offset safety related capital improvements, deductible or premium costs in Calendar Year 2021.

Assistant Finance Director Joseph then reviewed fee and fine schedule recommendations. Recommendations include increases to the water and sewer rates, garbage program general collection services fees and Golf Club rates. New proposed fees include fees for the following: alterations to approved architectural or engineering plans; use of downtown right-of-way; Plan Commission appearance review application; and residential development tree removal and preservation plan review and site inspections. She reported that staff also stated that business licenses and management fees require additional analysis during Calendar Year 2021, which will be brought to the Board for consideration at a later date. Last, she stated that the Village’s Places of Eating Tax will be effective starting on January 1, 2021, delayed from July 1, 2020 due to the COVID-19 pandemic.

Director Larson began the Calendar Year 2021 Budget summary discussion with a review of operating fund revenues totaling $28,187,042 and expenditures totaling $28,984,520, excluding the Police and Fire Pension Funds. She noted a one-time use of $1.7 million in reserves for the General Fund and $155,000 for the Capital Projects Fund, as well as a $51.7 million, 10-Year CIP of which $3.6 million would be allocated for Calendar Year 2021. Projected year-end fund balances were reviewed, noting that every fund is projected to end the year within fund balance policies.

Moving to department budgets, Assistant Director Joseph reviewed the Finance Department’s budget, detailing department employees, responsibilities and budget item inclusions. The Finance Department’s proposed Calendar Year 2021 Budget request is $1.69 million in expenditures. She reported costs for contractual services, liability insurance and Strategic Plan initiatives, including expenditures for training, professional development and noted the Finance Department’s involvement in the Village’s new enterprise resource planning (ERP) software implementation. She explained that a portion of the Department’s proposed expenditures are recommended to be offset by a one-time draw down of IRMA reserve funding. Last, Assistant Director Joseph reported a $200,000 transfer to the Capital Project Fund to finance future capital projects.

Public Safety Director Lewandowski reviewed the Public Safety Department budget, describing the services provided by his staff. The Public Safety Department’s proposed Calendar Year 2021 Budget request is $9.7 million. He detailed the Department’s contractual services and personnel expenditures, with salaries and benefits comprising the majority of the Department’s expenditures.

Next, he stated that the Department’s budget reflects an overall increase largely due to a significant increase in mandated police pension contributions for 2021. Public Safety Director Lewandowski then reported that due to COVID-19 revenue uncertainties, the Department will hold one sworn position vacant for the first six months of 2021, with the intent to refill the position in summer 2021 should funding be available. He further discussed staff training, grant funding opportunities and one vehicle replacement request as part of the CIP that was deferred from Stub Year 2020.

Next, Public Works Director David Mau provided an overview of the Public Works Department budget, detailing Department responsibilities and budget item inclusions. The Public Works Department’s proposed Calendar Year 2021 Budget request is $7.3 million. Director Mau provided an overview of key contractual services, such as plan review and inspection services, and discussed Department personnel expenditures. He noted that one of the Department’s 16 Maintenance Equipment Operator (MEO) positions, currently vacant due to a retirement, will be held vacant until July 2021, with the intent to refill the position in summer 2021 should funding be available. Director Mau then described the Department’s proposed CIP projects, which includes funding for vehicle, equipment and sidewalk replacements, as well as sanitary sewer mandates. Last, Director Mau discussed funding for the Department’s Strategic Plan initiatives, which include training and professional development, ERP implementation and program analyses for sidewalk snowplowing and residential leaf collection.

Moving to the Village Manager’s Office, Management Analyst/Deputy Village Clerk Jordan Lester detailed the Department’s Calendar Year 2021 Budget request, which is $2.2 million. She stated that a large portion of Department expenditures are for contractual services, including the Village’s legal counsel, as well as communications services to supplement the Village’s communications efforts. Management Analyst Lester reported that the Manager’s Office recommends the elimination of the vacant Community Engagement Analyst position and the addition of a part-time Administrative Intern. She noted that the Department’s only CIP project is the ERP implementation. In addition, Management Analyst Lester stated that the budget includes funding for special legal projects outside of the Village’s retainer agreement with Elrod Friedman and Calendar Year 2021 Community Grant awards, which are recommended to the Village Board by the Board’s Community Grants Committee.

Last, Golf Club General Manager Stella Nanos reported on the Glencoe Golf Club’s Calendar Year 2021 Budget request, totaling $2.3 million. She stated that Golf Club budget includes expenditures for food and beverage service and that staff intends to issue a Request for Proposals for service provision in 2021. In terms of personnel, she explained that the budget recommends the promotion of the Assistant in Training to the Second Assistant Superintendent position as part of long-term succession planning to eventually replace the current Superintendent upon his future retirement. In terms of capital expenditures, General Manager Nanos reported that the Golf Club’s budget includes funding for continuous cart paths, driving range tee expansion and the installation of protective driving range netting, which is expected to assist the Golf Club increase revenues. Then, she detailed the Golf Club’s Strategic Plan initiatives, including training, professional development and new Clubhouse fundraising efforts. Last, Trustees reviewed the Golf Club’s management fee and outstanding loan and discussed at length possible options moving forward.

Following General Fund department expenditures, Director Mau provided a high-level overview of the Public Works Department’s proposed Water, Motor Fuel Tax and Capital Projects Funds expenditures. Proposed Calendar Year 2021 Water Fund expenditures total $3.6 million and include funding to temporarily over-hire one Water Plant Operator to assist with succession planning, the continuation of the Village’s 2020 Water Meter Replacement Program and the replacement of several water distribution pumps and motors. Next, he reported that proposed Motor Fuel Tax Fund expenditures total $90,660 to fund traffic signal controller modifications at Green Bay Road and Park Avenue, as well as at Green Bay Road and Harbor Street. Director Mau noted that beginning in 2020, the Village received the first year of Rebuild Illinois Grant Program funds from the Illinois Department of Transportation (IDOT). IDOT will be dispersing these funds using their standard MFT formula and these funds must be deposited into the Village’s MFT Fund to be utilized for future road improvement projects. In total, the Village is projected to receive $574,880 over three years (through 2022), and the Village anticipates using these funds to supplement MFT funds for maintenance street resurfacing improvements. Last, for Public Works Capital Projects Fund expenditures, he explained that the proposed Fund budget is $155,000 to finance Phase 2 of the Village’s three-phased downtown gateway and wayfinding signage improvements.

Shifting to pension fund costs, Assistant Finance Director Joseph provided an overview of Calendar Year 2021 Police and Fire Pension Funds expenditures. Police Pension Fund expenditures total $3.4 million, and Fire Pension Fund expenditures total $48,900. She explained that both pensions are statutorily controlled and that only a single beneficiary remains in the Fire Pension Fund. Assistant Director Joseph added that pension funding is shared between Village contributions and the contributions made by active individual participants through their salaries. She emphasized that contributions are determined by Village’s actuary calculations.

Last, Finance Director Larson reviewed the Village’s 10-Year CIP. She reported that the CIP proposes $51.7 million in expenditures and includes an accompanying financing plan that contains anticipated General Obligation Bond issues in Calendar Years 2021, 2024 and 2027 and potential Alternate Revenue Source Bond issues in Calendar Years 2022, 2025 and 2028. She stated that included in the CIP are several projects pertaining to the Golf Club Clubhouse, Water Plant and Public Works Garage that do not currently have funding allocated and require further Board direction. Director Larson provided an overview of proposed Calendar Year 2021 CIP projects totaling approximately $3.6 million. She reported that staff ranked the projects based on priority and that certain projects may be deferred or completed at a later date if necessary due to financial constraints. In addition, Director Larson provided the Committee with possible financing mechanisms at the Village’s disposal to fund CIP projects, including use of cash reserves and the issuance of referendum bonds and limited tax authority bonds, with Manager Kiraly emphasizing that financial options are not mutually exclusive. Finally, Director Larson reviewed the Village’s CIP debt financing projection, which assumes additional bond financing in 2021, in addition to self-sustaining, alternate revenue bond financing for water system improvements in 2022.

Trustees discussed staff presentations and asked several clarifying questions. Finance Director Larson reported that staff intends to present the Calendar Year 2021 Budget to the Board during the November 19 Village Board meeting and that the final budget will be recommended to the Board for approval at its December 17 meeting.

VIII. OTHER ITEMS FOR DISCUSSION

There were no other items for discussion.

IX. ADJOURN

At 8:49 p.m., Trustee Ruben moved, seconded by Trustee Vree, to adjourn the meeting. The motion passed with the following roll call vote:

AYES: Ruben, Vree (2)

NAYS: None (0)

ABSENT: Miller (1)

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