Finance Committee

123 Madison Street Village of Oak Park Oak Park, Illinois 60302 www.oak-park.us Meeting Minutes Finance Committee Monday, October 22, 2018 6:30 PM Public Works Center 201 South Blvd. 1. Call To Order President Abu-Taleb called the meeting to order at 6:34 p.m. 2. Roll Call Present: Members of the Finance Committee; Trustee Andrews, Trustee Button, Trustee Taglia, and President Abu-Taleb. Absent: Trustee Tucker Also present: Village Manager Cara Pavlicek, Village Attorney Paul Stephanides, Village Clerk Vicki Scaman, CFO Drazner, Deputy Village Manager Lisa Shelley, Trustee Boutet, Trustee Moroney, Assistant Village Manager/HR Director Julia Scott-Valdez, Public Works Director John Wielebnicki, Village Engineer Bill McKenna, Budget & Revenue Budget Analyst Diane Stanislavski, Deputy CFO John Kramer, Finance Budget & Revenue Analyst Sean Keane, Development Customer Services Director Tammie Grossman, Development Customer Services Assistant Director Cameron Davis, Interim Police Chief LaDon Reynolds, Police Dept. Budget & Revenue Analyst Kellie Murphy, and Director of the Health Department Mike Charley. 3. Public Comment Jenna Holzberg: Ms. Holzberg spoke representing Bike Walk Oak Park. She is concerned bike safety and would like to see funds designated for implementing Oak Park's bike plan. The group is otherwise supportive of the Madison Street road diet project. Frannie Richie: Ms. Richie spoke in support of implementing bike safety infrastructure plans to improve safety concerns for bikers in the Village of Oak Park. 4. Approval of Minutes A. MOT 18-402 Minutes from the October 8, 2018 and October 11, 2018 Meeting of the Village of Oak Park Page 1 Printed on 11/14/2018 Finance Committee Meeting Minutes October 22, 2018 Finance Committee. It was moved by Trustee Andrews and seconded by Trustee Button to approve the Finance Committee minutes from October 8, 2018 and October 11, 2018. A voice vote was taken and the motion was approved. 5. New Business B. ID 18-987 Finance Committee Review of the Draft Recommended FY19 Budget Village Manager Pavlicek summarized the agenda for this meeting as part of the FY19 proposed budget review process. The Finance Committee will be reviewing Internal Services Funds and Special Revenue Funds. CFO Drazner reviewed and explained revenue sources for projects listed under the Debt Service Fund. He explained how the tax levy that appears on a resident property tax bill is figured; the levy required to cover the debt service fund minus abatements identified by other revenue sources and approved by the Village Board leads to an adjusted levy that matches what appears on a resident tax bill. CFO Drazner identified for the Village Board the debt maturity schedule for each debt issue. Trustee Boutet stated it would be helpful to see the debt maturity schedule charted through 2023 so she can easily identify when debt is rolling off. Assistant Village Manager/HR Director Julia Scott-Valdez presented and responded to questions of the Village Board regarding the Village's Health Insurance Fund including what benefits are offered, cost, and options for employee participation. The HR Department relies on assistance from an insurance broker to provide the most cost-effective benefit plans and options to its employees. President Abu-Taleb requested a comparison of how our employee benefit plans compare to that of similar communities. CFO Drazner provided an overview of funding for the Village's Self-Insured Retention Fund. Currently the Village supplements the Self-Insured Retention Fund with revenue from the Water and Parking Funds, which is an inherited approach to avoid raising taxes. Village Attorney Stephanides explained expenditures listed for this fund. Ms. Scott-Valdez manages an administrative process that keeps costs down and assures fair treatment of claims paid for out of the self-insured retention fund. Ms. Pavlicek introduced the Special Revenue Funds for the Village Board and the appropriate staff responded to questions: Bullet Proof Vest Grant Fund - Acting Chief LaDon Reynolds provided the information that this grant is through the Illinois Department of Justice. There were no additional comments or questions for this grant. Community Development Block Grants (CDBG) - Director of Village of Oak Park Page 2 Printed on 11/14/2018 Finance Committee Meeting Minutes October 22, 2018 Development Customer Services Grossman responded to questions related to the Community Development Citizen Advisory Committee (CDCAC, Village Commission) process for awarding CDBG grants. CDBG funds affordable housing development activities, anti-poverty programs, and related infrastructure. Ms. Grossman explained how the amount of funds provided by the United States Department of Housing and Urban Develpment (HUD) is largely determined by Congress and can vary from year to year. She also explained what types of programs and services can be paid for utilizing HUD Funds. In addition to CDBG grants, HUD funds can pay for housing related administrative and service costs for very specific areas of the community and accessibility related costs throughout the Village. Community Development Block Grant Revolving Loan Fund - Ms. Grossman explained that funds received from CDBG loans are required to be used for continuing the program and if the Village were to decide not to participate they would need to give the money back to HUD. Cook County Lead Hazard Prevention Grant - Cook County grant funds to address lead rehab work and responding to all concerns related to lead poisoning and treatment, including rehabing of the home. Ms. Grossman and Board of Health Director Mike Charley responded to questions of the Village Board. Downtown TIF Fund - Ms. Pavlicek provided the history of this TIF and the related settlement agreement with D97 and D200 from 2011. In December the Village Board will be voting on an ordinance to capture 2018 tax revenue in 2019 per the settlement agreement for the TIF. This process will be repeated in December of 2019 for the anticipated growth due to the development in the TIF. The Village Board asked questions to clarify what downtown Oak Park development project debt can be paid utilizing future distributions from the downtown TIF. Earth Fest Fund - Managed by the Sustainability Coordinator in the Village Manager's Office, this fund is paid for out of the Environmental Services Fund, which is collected with the garbage service fees. Emergency Solutions Grant Fund - HUD funds designated for the prevention of homelessness. These funds are primarily granted to Housing Forward as the only qualified agency for the purpose of the grant. Farmer's Market - Managed by the Farmer's Market Commission under the Board of Health. Federal Recovered Drug Asset Forfeiture (RICO) Fund - Funds designated by RICO for vehicles and specific equipment for the Police Department are transferred into the Police Fleet Fund. Foreign Fire Insurance Fund - Revenue from the tax issued on fire insurance policies sold by foreign (out of state) insurance companies, managed by a Board elected from members of the Oak Park Fire Department, to be used for the maintenance, use, and benefit of the Oak Park Fire Department. Village of Oak Park Page 3 Printed on 11/14/2018 Finance Committee Meeting Minutes October 22, 2018 Health Department Grant - Grants used through the Health Department that are on a reimbursement payment schedule and do not carry a balance. Madison Street TIF - The Madison Street TIF is due to expire on December 31, 2018. Village Engineer McKenna presented a powerpoint on the history, project overview, resurfacing and road diet options for 2019 construction, and potential streetscaping project for 2020. The project history included a timeline of public involvement beginning on November 22, 2010 through 2017 and a timeline of Board direction for conducting traffic studies and planning for Board understanding of different options. Mr. McKenna explained that parts of Madison Street are in great need of infrastructure improvements with or without development and planning for that work to be done requires an understanding of what type of development is eminent and when it will be conducted. Village Manager Pavlicek informed the Village Board that they will be asked to provide direction for utilizing the Madison Street TIF at upcoming Board meetings before the end of the year. Mr. McKenna responded to Board questions related to infrastructure needs, timeline concerns, bike safety, streetscape options and related costs. Mr. McKenna provided an overview of all bike safety initiatives planned for with infrastructure improvements totalling approximately $600,000. He acknowledged that bike safety improvements will not be implemented on streets that are scheduled to be torn up in the next several years. Trustee Andrews requested publication of planned for bike-walk safety initiatives with the alocated budget amount for the benefit of community organizers interested in this information. President Abu-Taleb requested an updated dollar amount spent on Engineering Design costs for future discussions. Trustee Andrews stated that he would prefer to use TIF funds for infrastructure and development and go to bond for developer incentives so that the option to pay that cost down faster would exist. Trustee Boutet shared she would prefer to use a pay-as-you-go model for incentives and otherwise agrees with Trustee Andrews for funding sourcing. Trustee Moroney would like to see the Village stay within the TIF budget and not go to tax payers for any portion of the project. Mr. McKenna idenitified the street light just east of Oak Park Ave. on Madison Street as the light chosen by the Madison Street Coalition for that area of Madison Street. Trustee Andrews requested the cost if they were to use that light fixture for all of Madison Street. Village Manager Pavlicek went through the timeline for decision making related to Madison Street. Monday, October 29th, the Village Board will be asked to respond to a recommendation from the Oak Park EDC on a preferred developer for Oak Park and Madison. In November, the Village Board will be asked to make a series of decisions on the development proposal and related infrastructure so that Engineers have the information they need to request bids for and plan for construction. Trustee Boutet requested all developers be available for the October 29th meeting. Ms. Village of Oak Park Page 4 Printed on 11/14/2018 Finance Committee Meeting Minutes October 22, 2018 Pavlicek responded that the Oak Park EDC is prepared to respond to questions related to all development proposals. Motor Fuel Tax: Funds received for the Village's share of the state gasoline tax, transferred to the General Fund to be used for labor and materials costs associated with maintaining roadways. Special Service Area #1: Funds designated to support the Downtown Business District, which supports Downtown Oak Park (DTOP) for primarily special events and beautification. Trustee Andrews asked questions related to budgeting for funding loss with Downtown Oak Park when the TIF ends. Ms. Pavlicek stated they are in contact with DTOP leadership related to when the TIF ends and the potential effects on their budget. Ms. Pavlicek anticipates some of the loss to be offset by increase of tax revenue due to development that was the result of the TIF. DTOP currently requests the necessary levy to operate according to the agreement that exists with the Village. Special Service Area #7: Traffic calming diverters placed along 1200 Elmwood and Rossell. Trustee Boutet requested more narrative in the budget. Section 108 Loan Fund: Small business loan fund, supported by HUD, that would assist an established stable business looking to grow and able to hire additional staff. Special Service Area #9: Traffic calming speed bumps for 1200 Euclid, Linden, Columbian, and East Ave. Sustainability Fund: Fund that currently supports a full time sustainability coordinator to work with the Environment & Energy Commission and a consultant to suggest Village sustainability options to invest in. Trustee Boutet reiterated her request to ask all developers to be present at the October 29th Village Board meeting. Trustee Taglia, Andrews, and President Abu-Taleb disagreed with the need to ask all of the developers to be present. Oak Park EDC will present. 6. Old Business There was no old business to discuss. 7. Adjournment It was moved by Trustee Button and seconded by Trustee Andrews to adjourn. A voice vote was taken and the meeting was adjourned at 8:59 p.m. Respectfully submitted, Clerk Scaman Village of Oak Park Page 5 Printed on 11/14/2018