Finance Commission

Agenda Village of Glen Ellyn Finance Commission Meeting Friday, December 12, 2025 7:00 AM Glen Ellyn Civic Center, Room 301 Visitors are most welcome to attend all meetings of the Finance Commission and can find copies of the Agenda at the meeting or online at www.glenellyn.org prior to the meeting. Any individual with a disability requiring reasonable accommodation in order to participate in a meeting should contact The Village of Glen Ellyn ADA Coordinator, 630-469-5000, at least five (5) business days in advance of the next scheduled meeting. All matters on the Agenda may be discussed, amended, and acted upon. A. Call to Order B. Roll Call C. Public Comment D. Approval of Minutes 1) November 14, 2025 meeting E. 2026 Agenda Planning F. Staff Report G. Chairperson's Report H. Trustee Liaison's Report I. Other Business J. Reminders 1) Next Meeting: Friday, February 13, 2026 at 7:00 AM K. Adjourn Civility Pledge - In the interest of civility, I pledge to promote civility by listening, being respectful of others, acknowledging that we are striving to support and improve our community, and understanding that we each may have different ideas for achieving that objective. Page 1 of 5 Village of Glen Ellyn Minutes Village of Glen Ellyn Finance Commission Regular Meeting November 14, 2025 7:00AM Glen Ellyn Civic Center Board or Finance Date: November 14, 2025 Commission: Meeting: Regular Called to 7:00 a.m. Order: Quorum: Yes Adjourned: 8:21 a.m. MEMBER ATTENDANCE: Chris Goodman Chair Present Lea Dan Vice-Chair Present Ann Arnold Commissioner Present Mike Graham Commissioner Present Leo Hoerdemann Commissioner Present Grant Lavery Commissioner Present Kevin Moffitt Commissioner Present Brian Niksa Commissioner Present Scott Waldbusser Commissioner Present – Late arrival 7:05 am Also Present: Patrick Brankin Finance Director Mark Franz Village Manager Kelli Christiansen Village Trustee A. CALL TO ORDER The November 14, 2025 regular meeting of the Finance Commission was called to order by Chairman Goodman at 7:00 AM at the Glen Ellyn Civic Center. B. PUBLIC COMMENT – None C. APPROVAL OF MINUTES FROM SEPTEMBER 12, 2025 MEETING MOVE TO APPROVE THE MINUTES OF FINANCE COMMISSION FROM 9/12/2025 RESULT: Motion Unanimously Carried MOVER: Commissioner Niksa SECONDER: Commissioner Moffitt AYES: 9 Page 2 of 5  Finance 2 November 14, 2025 D. FINANCIAL REPORTS 1. 2025 Q3 Financial Report – Finance Director Brankin presented the Q3 Financial Report (see attached) for the period of January 1 through September 30, 2025, noting that the figures are preliminary, unaudited, and reported on a cash basis, consistent with prior quarterly reports. For comparison, he reminded the commission that in September 2024 the Board approved a $4 million cash transfer out of the General Fund, $2 million to Capital Projects and $2 million to Fire Services, both for capital needs. Revenues continue to outpace both the prior year and budget projections, while expenditures are higher than last year. Year-to-date expenses remain below budget. Core revenues, such as sales taxes, typically reach 74% of annual totals by September 30; this year, the Village is at 83.5% of budget for sales tax and 83.6% for home rule sales tax, indicating these categories will exceed budget. Income tax revenues are more front-loaded and remain on track at 77%, which is typical for this point in the year. Brankin reviewed several charts with the Finance Commission that illustrated strong growth across multiple revenue categories over the past five years. He noted no material changes in General Fund expenditure trends since Q2. Personnel costs continue to rise year over year as expected, and while vacancies remain, particularly in Police, Finance, and Community Development, the related salary savings are significant, especially in the Police Department, and were not anticipated. The Village also received a substantial influx of property tax revenue in September. Turning to the General Fund and Capital Projects, real-estate transfer tax revenues continue to outperform previous years. Although transaction volume varies, total revenues remain ahead of the last two years. Food and beverage tax revenue continues its pattern of slow but steady growth. In the Enterprise Funds, Water and Sewer revenues remain generally in line with last year. Expenses are trailing budget but often catch up towards year-end as construction payments are issued. Parking Fund revenues typically increase in Q4 due to permit renewals, and expenses remain on track at 75%. Solid Waste Fund expenses are also tracking at 75%. Village Links reported a very strong 2025, with year-to-date net position exceeding $900,000 compared to $500,000 in the prior year; the difference largely attributed to the clubhouse project last year. Cash reserves across all applicable funds remain strong and above policy thresholds. The Police Pension Fund continues to perform well, with inception-to-date returns significantly exceeding both Village and consolidation benchmarks. The Village Page 3 of 5  Finance 3 November 14, 2025 will be re-evaluating actuarial assumptions, including the long-term rate of return and the pension liability discount rate, currently at 6.5%. Staff will review peer community practices before recommending any changes. Manager Franz added that statewide police and fire groups are lobbying to eliminate Tier 2 pension benefits, which would significantly increase municipal costs. Pending legislation could have an estimated $400,000 annual impact on the Village. The Village is lobbying against the proposal, and presenting data to legislators who were not involved 10 years ago when Tier 2 was created; because this is the Village’s top legislative priority. Chairman Goodman reminded the commission that under the state constitution, any benefit enhancement cannot be reversed once enacted, making such changes permanent. E. General Fund 5-Year Forecast 1. General Fund Forecast Update 2025 - Finance Director Brankin reviewed the updated forecast, noting that while this year’s version is less comprehensive than last year’s, it remains realistic and consistent in approach. He explained that General Fund expenditures by department show no significant surprises. The Police Department continues to represent the largest share of General Fund spending, nearly half, reflecting Public Safety as the Village’s primary function. Reviewing expenditure categories, Brankin noted that personnel costs remain the largest component of the General Fund, and health insurance costs are included within that category. Investment income has been adjusted downward in response to interest rate changes. CPI has been recalculated using a 10-year average. In terms of core revenues, the three-year average growth for sales tax and home rule sales tax is above 10%, while the Village budgeted 6%. State income tax revenues are expected to increase by 5%. State use tax revenues are budgeted at $200,000 for 2026. On the expenditure side, the new 10-year CPI average is 3.22%. Although CPI has been trending downward, the forecast maintains the 3.22% figure. IMRF employer contribution rates remain unchanged at 6.8%. Sworn salaries reflected an average total increase of 6% this year, with a new contract forthcoming. For 2027, salary increases are projected to rise to 8% before stepping down in subsequent years. Pension contributions are projected to increase by $250,000 in both 2027 and 2028. Health insurance costs are projected to rise 15% for PPO plans in 2025, and the Village continues to see more employees electing PPO coverage compared to HMO. Previous assumptions were understated, but over the five-year forecast period, the Village has adjusted to a 10% annual increase before trending down to 5%. The Village continues to cover 80% of health insurance costs. Regarding capital outlay, union negotiations are ongoing and expected to be resolved next year. The Village has identified upcoming significant facility needs, including window replacements in the Civic Center and potentially a new public Page 4 of 5  Finance 4 November 14, 2025 works building. Brankin concluded by reviewing the five-year expenditure forecast and comparing the bottom line for 2026 with last year’s projections. F. FINANCIAL SCORECARD UPDATE 1. Scorecard Update – Director Brankin reported that the scorecard project is still in early development and will carry over into 2026. He reviewed several data components with the Finance Commission, including demographic information, population, median household income, median property value, EAV and EAV per capita, direct municipal tax rate, median home value and tax rate, annual tax dollars, debt per capita, pension liabilities, and pension liabilities per capita. Brankin noted that some of the median figures appeared inconsistent and will be re-examined for accuracy. He added that additional work is needed to strengthen the property tax analysis and ensure the scorecard offers more meaningful, “apples-to-apples” comparisons, particularly regarding organizational size, FTE counts, and spending levels across communities. Chairman Goodman suggested the scorecard should also highlight areas where Glen Ellyn operates differently from peer municipalities. G. STAFF REPORT – Finance Director Brankin reported that there will be a December meeting but no meeting in January. The commission will reconvene in February 2026. H. CHAIRPERSON’S REPORT – Chairman Goodman asked the Commission to come to the next meeting with topics for 2026 that they believe the Commission should work on. He will also be meeting with Village Manager Franz and Village President Jim Burket to discuss potential priorities for the Commission. I. TRUSTEE LIAISON’S REPORT – Trustee Christiansen provided several updates: The Village held the first reading of the budget this past Monday, with no vote taken. The second reading—and the vote—will take place this coming Monday. Prior to that meeting, there will be a joint session with the Village of Lombard and the Glenbard Wastewater Authority. The Village also passed a resolution and ordinance amending the C4 district to allow first-floor restaurants within office buildings. Finally, the Glenwood parking lot is nearing completion and is expected to be finished in time for Thanksgiving and the Holiday Walk. J. OTHER BUSINESS – None K. REMINDERS – Next meeting, Friday December 12, 2025 at 7:00 a.m. L. ADJOURNMENT– Commissioner Dan motioned to adjourn the meeting and Commissioner Hoerdemann seconded the motion. The meeting was adjourned at 8:21 a.m. Submitted by Elisa Pollina, Recording Secretary Reviewed by Patrick Brankin, Finance Director Page 5 of 5