North Cook News

Village of Northbrook Committee of the Whole met Oct. 8

Here are the minutes provided by the committee:

1. ROLL CALL

Attendee Name Title Status

Kathryn Ciesla Village President Absent

Robert Israel Trustee Present

Heather Ross Trustee Present

Daniel Pepoon Trustee Present

Johannah Hebl Trustee Present

Joy Ebhomielen Trustee Present

Michelle Kohler Trustee Present

Also Present: Village Manager Cara Pavlicek

Assistant to the Village Manager, Sam Reiss

CFO Steve Drazner

Fire Chief Schweihs

Interim Police Chief Ustich

Public Works Director Kelly Hamill

Deputy Public Works Director Matt Morrison

CIO Lori Baker

Lauterbach & Amen: Matt Beran

Veregy: Erin Perry, John Lambert, Danielle Melone

RESULT: MOTION TO APPOINT ROBERT ISRAEL, TRUSTEE AS PRESIDENT

PRO-TEM [5 –0]

MOVER: Daniel Pepoon, Trustee

SECONDER: Michelle Kohler, Trustee

AYES: Ross, Pepoon, Hebl, Ebhomielen, Kohler

NAYES: None

ABSTAIN: Robert Israel, President Pro-tem

ABSENT: Kathryn Ciesla, President

2. MINUTES APPROVAL

A. September 24, 2024 Committee of the Whole Minutes for Approval

RESULT: APPROVED [5 –0]

MOVER: Daniel Pepoon, Trustee

SECONDER: Michelle Kohler, Trustee

AYES: Ross, Pepoon, Hebl, Ebhomielen, Kohler

NAYES: None

ABSTAIN: Robert Israel, President Pro-tem

ABSENT: Kathryn Ciesla, President

3. DISCUSSION TOPICS

A. Presentation of Annual Comprehensive Financial Report, Board Communication Letter, Management Letter, and Overview of Financial Results for Fiscal Year Ended April 30, 2024

Mr. Beran, auditor at Lauterbach & Amen stated the report is for the Fiscal Year Audit ending April 30, 2024. Preliminary field work was performed that included cash receipts, payroll, disbursements, utility billing and credit cards. The audit fieldwork numbers were tested for the report writing phase.

Mr. Beran led the Board through the Audit Report and Management Letter. The Audit Report contains the Letter of Transmittal from the Village. Lauterbach & Amen will transmit the letter to GFOA seeking a Certificate of Achievement for Excellence in Financial Reporting.

The Independent Auditors Report states that the Village Audit Report has numbers that are materially correct and is in compliance. The Management Discussion Analysis is a high-level narrative summary of everything that is included in the Audit Report.

A Balance Sheet showed the long-term assets, capital assets, and long-term debt. The Village net position was increased and is considered a positive measure.

Trustee Kohler asked how we compare to similar communities. The answer is that it is similar for pension funds to be negative. 59% and 56% is around the average for the State. This is a normal amount of liability.

Trustee Kohler asked what is the target amount that the Village should aim for. The answer is by 2040 the mandate is for 100% funding. The Village contribution to the Police Pension for the year ending April 30, 2024 was $5.4 million. The Village contribution to the Firefighter Pension for the year ending April 30, 2024 was $5.8 million. Police funding percentage increased from 57.6% to 59%. Firefighter funding percentage increased from 53.5% to 57%.

Fund level financials show the total decrease for the year was $231,000. The General Fund had a total decrease of $4.4 million due to a capital $5.9 million transfer. The General Fund had revenues over by $2.5 million. Expenses were below budget by $3 million.

Total Fund Balance compared to expenditures show the General Fund was 53% at the end of the year. Across all funds the Village is at 71%.

Business type funds include Water, Sewer etc. The total unrestricted line is $4.2 million for Water. Sanitary Sewer is $160,000. Storm Water Utility is a negative $755,000. Overall most funds were positive. Water is healthy. Storm water and Utility had a decrease of $841,000. Manager Pavlicek stated that there is funding needs to be addressed in the Storm Water Fund.

Trustee Hebl questioned the Senior Housing Fund. Mr. Beran stated that it still has a comfortable fund balance.

Trustee Hebl questioned that the Parking Fund has a $50,000 deficit. The answer is that a daily parking fee increase became effective this fiscal year and will be reflected in the next audit.

The Management Letter showed no internal control findings.

Mr. Drazner provided other highlights. The General Fund had a negative $4.5 million as a $7.9 million transfer out of surplus was approved with $5.9 million to the Capital Facilities Fund for a new fire, fleet and police facilities and $2.9 million was contributed to the police and fire Pension Funds. The second ARPA (American Rescue Plan Act) distribution of $2 million to replace lost revenue during COVID was received in 2023. The unassigned fund balance is approximately $26 million in the General Fund.

In calculating fund balance, per policy, total revenue for the year was $51.4 million; 40% is $20.6 million. Ending unassigned fund balance was $26.3 million. Therefore, surplus is $5.7 million. Consistent with prior years, 70% of the surplus above the 40% fund balance requirement has been transferred to the Capital Facilities Fund for new facilities for fire, fleet and police. The balance of $1.7 million is at the Board’s discretion and staff will present a recommendation at a future meeting which make include the Stormwater Fund or other one-time needs.

Manager Pavlicek shared the delivery schedule to get to the end of the year Budget and Tax Levy. The October 22, 2204 meeting will be the Quarter 1 update. The Property Tax Levy must be set at the December 10, 2024 meeting. CIP recommendations will be given November 12, 2024.

Manager Pavlicek will provide options on policy questions. She stated the Public Works Rate Study will require review in advance of July 2025. She will provide information on how to frame the rate study.

Trustee Hebl affirmed that the Stormwater Fund be self-sustaining and questioned the idea of putting money from the General Fund into it. Manager Pavlicek stated that this is a policy decision to be undertaken and addressed.

Trustee Israel asked if we have to absolutely do all of the stormwater projects identified in the third amendment.

Trustee Kohler stated that if we are too deep in the hole, the Village cannot raise the rates to cover. Something else must be done.

Manager Pavlicek stated that the rate study will be provide fiscal analysis to inform policy considerations.

CFO Drazner next reviewed in detail total net Ambulance Fee Revenue which was $2.7 million. The adopted two year budget identified in FY26 the funding to hire six additional firefighters. Mr. Drazner stated it is appropriate to increase the base amount for ambulance fee revenues considered surplus from $1.2 million to $2 million. If this change is accepted, the surplus ambulance fee revenue that would be transferred to the police and fire pension funds would be an additional $357,000.

Manager Pavlicek thinks the property tax levy should be increased to support pensions for police and fire at a higher amount based upon an actuarial analysis. Trustee Kohler wants to see what the burden will be on our homeowners.

Trustee Hebl asked if there is a narrative regarding the Audit on the Village website. Information on the budget is included in the print mailed version.

Expenses by category show that salaries and benefits are between 70% plus of total General Fund Budget.

Manager Pavlicek thanked the Finance staff for all of their work on the audit.

B. A Discussion and Update on the Automated Metering Project

Deputy PW Director Morrison began with recommendations for the Automated Metering Project or AMPT. The three goals are to improve customer service, increase access to usage information and to reduce the amount of unreported water usage.

There are currently 12,000 water meters in place within the Village and twelve different meter manufactures. Since 2021 the Village has used Neptune Mach 10 meters. Most of the new meters have reading remote capabilities. The Village is still using meter reading books.

AMPT (Automated Metering Project Team) prepared a RFQ released on October 11, 2023 for management services. Veregy, Inc. was the firm selected for project management and meter installation services. The team used a multidisciplinary approach to get to this point. The Village will use the Neptune Mach 10 meter and would purchase their Itron endpoints. This is the radio that connects with the meter and communicates and sends the readings to the software system. All of this will be communicated over the ComEd network. Temetra is the Itron reader meter software that takes in the ComEd information and will send to the BS&A billing module. The Village will utilize the VXsmart Customer Portal. Deputy PW Director Morrison stated that there are a lot of software pieces that go into the project. The Village does not have the ability to sync with BS&A.

The billing information will need to be uploaded on a regular basis on the usage.

Customers will then be able to see a billing history, usage history, and make payments on the BS&A portal.

Trustee Hebl asked if the Village is committed long term to all of the software. Temetra is tied to ComEd for at least 15 years. The BS&A lifespan moving to the cloud base is 5-8 years. The ComEd network is already in place and presents a lot of benefits to the Village. Because of utilizing the ComEd network, the Village is tied to the Itron software.

Customer billing will continue to be on a quarterly basis.

Costs were given for the Neptune readers with the ComEd network and Itron. The cost and size of the meters has risen approximately 30%. Labor and installation have increased 20-25% over the last two years. The Village has a contingency factored into the cost. 

Manager Pavlicek stated that the partnership with Veregy outsourcing the piece of installation was included in the cost. As the Village moves forward with the contract, the Village attorney is reviewing the agreement with Veregy. On October 22, 2024 the Village Board will be presented with contracts for consideration at their Board meeting. November 2024 - January 2025 equipment orders would be placed with expected delivery to begin in January 2025. In April 2025 meter installation would begin.

Trustee Ross asked if there is ever trouble getting into a resident’s home.

Trustee Kohler asked if there is a baseline alert that the Village can create with all of the accounts.

Deputy PW Director Morrison will verify.

4. REMARKS FOR THE GOOD OF THE ORDER - None

5. CLOSED SESSION - None

6. ADJOURN

RESULT: ADJOURN AT 7:25 P.M. [5 – 0]

MOVER: Michelle Kohler, Trustee

SECONDER: Heather Ross, Trustee

AYES: Ross, Pepoon, Hebl, Ebhomielen, Kohler

NAYES: None

ABSTAIN: Robert Israel, President Pro tem

ABSENT: Kathryn Ciesla, President

https://northbrook-il.granicus.com/DocumentViewer.php?file=northbrook-il_0e1565f7b70cebc740ad8186eaaba9ea.pdf&view=1