President and Board of Trustees

123 Madison Street Village of Oak Park Oak Park, Illinois 60302 www.oak-park.us Meeting Minutes President and Board of Trustees Monday, June 27, 2016 6:30 PM Village Hall I. Call to Order Village President Abu-Taleb called the meeting to order at 6:32 P.M. II. Roll Call Present: 7- Village Trustee Barber, Village Trustee Brewer, Village Trustee Button Ott, Village Trustee Lueck, Village Trustee Salzman, Village Trustee Tucker, and Village President Abu-Taleb Absent: 0 III. Consideration of Motion to Adjourn to Executive Session to Discuss Minutes, and Pending and Probable Litigation. It was moved by Village Trustee Barber, seconded by Village Trustee Salzman to enter into Executive Session pursuant to 5 ILCS 120/2(c)(21) - discussion of minutes of meetings lawfully closed under the Open Meetings Act, and 5 ILCS 120/2(c)(11) - litigation. The motion was approved. The roll call on the vote was as follows: AYES: 7- Village Trustee Barber, Village Trustee Brewer, Village Trustee Button Ott, Village Trustee Lueck, Village Trustee Salzman, Village Trustee Tucker, and Village President Abu-Taleb NAYS: 0 ABSENT: 0 V. Reconvene to Special Meeting in Room 101 and Call to Order The Special Meeting reconvened at 7:30 P.M. VI. Roll Call Present: 7- Village Trustee Barber, Village Trustee Brewer, Village Trustee Button Ott, Village Trustee Lueck, Village Trustee Salzman, Village Trustee Tucker, and Village President Abu-Taleb Absent: 0 VII. Agenda Approval It was moved by Village Trustee Tucker, seconded by Village Trustee Button Ott, to approve the agenda. A voice vote was taken and the motion was approved. Village of Oak Park Page 1 Printed on 7/6/2016 President and Board of Trustees Meeting Minutes June 27, 2016 IX. Public Comment There was no public comment. XX. Regular Agenda MOT 16-073 Motion to Receive the FY 2015 Comprehensive Annual Financial Report (CAFR) and Supporting Documents. Village Manager Pavlicek noted that the Village's annual audit and Comprehensive Annual Financial Report are due to the State of Illinois by June 30 of each year. Dan Berg of the auditing firm Sikich, LLC stated that they had met with the Finance Committee last week to review the draft report and were able to get the final report to the Board and ready to file with the State. He discussed the opinion included in their report. The opinion highlights the change in the financial statements that were necessary this year due to government accounting standards requiring them to account for the Village's three pension funds differently. In the past, they reported on the face of the financial statements how far ahead or behind the Village was on their pension liabilities. All supporting documents contained information necessary to formulate the total amount of the liabilities. However, they are now required to put that total amount on the books, which made a fairly large impact. He added that the audit went smoothly, with a few journal entries and a few suggestions and recommendations. Mr. Berg recommended that the Board read the Management Discussion and Analysis Report, written by Chief Financial Officer Steve Drazner, in which he compares last year to this year and explains why things have changed from then to now. He discussed the figures on the Statement of Net Position and explained how the new accounting standards affect the Village's net position. Village Manager Pavlicek explained the flow and reporting of the pension liabilities. There was a discussion and Mr. Berg answered questions from the Board. Mr. Berg discussed post employment benefits, which are for those who choose to stay on the Village's health insurance plan despite no longer working for the Village and explained how that is calculated. He noted that as of 2017, it will be required that this amount be accounted for in the same manner as the pension funds. Village Manager Pavlicek explained several circumstances in which post employment benefits would apply. Mr. Berg discussed Enterprise Funds, noting that the Parking Fund made $800,000 this year. This is significant due to their past debt to the General Fund; it is important that the General Fund not subsidize any Enterprise Funds. Village Manager Pavlicek explained the importance of the Parking Fund making a profit. Once the Downtown TIF ends in 2018, the Parking Fund will need to take over payments for the Holley Court and Avenue parking garages. Mr. Berg briefly discussed the Communications of Deficiencies Report. Village Trustee Salzman stated that he would like to see periodic inventories and appraisals of Village owned property and how that would affect their overall financial position. He also discussed water pumped versus water billed. Mr. Drazner clarified the discrepancy. Village Trustee Brewer spoke about getting a clearer document when amendments to the budget are made in order to better identify line items affected. It was moved by Village Trustee Button Ott, seconded by Village Trustee Brewer, Village of Oak Park Page 2 Printed on 7/6/2016 President and Board of Trustees Meeting Minutes June 27, 2016 that this Motion be approved. The motion was approved. The roll call on the vote was as follows: AYES: 7- Village Trustee Barber, Village Trustee Brewer, Village Trustee Button Ott, Village Trustee Lueck, Village Trustee Salzman, Village Trustee Tucker, and Village President Abu-Taleb NAYS: 0 ABSENT: 0 ID 16-204 Preview of the Upcoming FY 2017 Budget Process Village Manager Pavlicek stated that staff is beginning to work on development of the 2017 budget process and that the Municipal Code requires certain things to be done in terms of public hearings and dates to provide budget information. She gave a brief overview of each of the Village's funds. Mr. Drazner presented the 2015 Tax Levy Rate Breakdown to be collected in 2016 and noted that the Village's levy rate is 2.062 and 15.3% of the total tax levy. He discussed the Equalized Assessed Value (EAV) By Category from 2005 to 2014. He stated that there are fluctuations throughout those years and noted that residential is assessed at 10% and commercial and industrial at 25%. Village Manager Pavlicek commented that this is why so much attention is given to commercial development, as it is 2.5 times every dollar. In the long term, growth in the EAV is the path out of these fiscal challenges. In addition, it will not be so reliant on the homeowners. Next, Mr. Drazner presented an example in an increase of $1 million in the tax levy and the corresponding increase in property taxes. He gave a breakdown of the Village's tax levy and sales tax dollars, and a comparison of those to other municipalities. Also included in the presentation were an Expenditure Overview for FY16 , Projected Outstanding Debt and Debt Service by Levy Year, Village Manager Pavlicek gave an overview of the budget process and noted that cost of staffing, pension funding, capital improvement needs in an aging community and the emergency fund balance are some of the general concerns. She asked the Board for input as to what specific topics they would like to discuss in more detail so those items can be put on an agenda. She also noted that the calendars from August through December are similar to past years regarding the schedule of the budget process. Village Trustee Barber asked for more information regarding the drop in the EAV. Village Trustee Brewer asked for information regarding GO bonds in terms of anticipated outstanding debt. XXI. Adjourn It was moved by Village Trustee Lueck, seconded by Village Trustee Button Ott, to adjourn. A voice vote was taken and the motion was approved. Meeting adjourned at 8:45 P.M., Monday, June 27, 2016. Respectfully Submitted, MaryAnn Schoenneman Deputy Village Clerk Village of Oak Park Page 3 Printed on 7/6/2016