Administration and Finance Committee

‭Administration & Finance Committee‬ ‭Thursday, January 9, 2025‬ ‭Minutes‬ ‭I.‬ ‭CALL TO ORDER‬ ‭II.‬ ‭ROLL CALL -‬‭Trustees: Guzzo, Liddle, Nero, and Barker.‬‭Mayor Gunter & Clerk‬ ‭Szymski. Staff: Manager May, Chief Gunther, Director Mielcarski, Assistant Parker, Director‬ ‭Altic, Director Hennerfeind, Director Ries, Deputy Chief Frank, Deputy Chief Fitzgerald, Director‬ ‭Brainerd, Director McIntyre, and‬ ‭III.‬ ‭PLEDGE OF ALLEGIANCE‬ ‭IV.‬ ‭PUBLIC COMMENTS - None‬ ‭V.‬ ‭MINUTES‬ ‭A.‬ ‭Approval of the December 19, 2024 meeting minutes‬‭of the Administration and‬ ‭Finance Committee. Motion to approve Trustee Nero, 2nd by Trustee Barker; all‬ ‭ayes.‬ ‭VI.‬ ‭UNFINISHED BUSINESS - None‬ ‭VII.‬ ‭NEW BUSINESS‬ ‭A.‬ ‭Director Mielcarski presented on the DuPage Mayors‬‭and Manager’s‬ ‭Conference Legislative Action Plan. A review of the four topics that will be the‬ ‭focus for the Spring legislative session. (see attached) A resolution accepting‬ ‭this item is on tonight’s Village Board agenda.‬ ‭B.‬ ‭Assistant VM Parker presented on the Outdoor Dining on Public Parkway grant‬ ‭program. As only two of the five restaurants are utilizing the outdoor dining‬ ‭areas, the question becomes do we want to extend the grant program longer to‬ ‭allow for the other businesses to purchase tables & chairs for the upcoming‬ ‭season in this fiscal year?‬ ‭a.‬ ‭Trustee Liddle stated that it was a fine idea, the businesses need to be‬ ‭able to put the right type of product out there.‬ ‭b.‬ ‭Trustee Barker asked what the maximum grant amount is? AVM Parker‬ ‭replied that it was $5,000.00. Reminder that it was only for equipment.‬ ‭c.‬ ‭Mayor Gunter hopes that in the Spring the businesses will begin thinking‬ ‭of outdoor dining. He also stated that inappropriate furniture will not be‬ ‭allowed in the extended brick parkway and an agreement must be signed.‬  ‭C.‬ ‭Director Altic presented on the State of IL repeal of the 1% state wide grocery‬ ‭tax.(see attached) Discussion ensued regarding moving forward with an‬ ‭ordinance now, or waiting for the new new board to forward 1/1/2026.‬ ‭a.‬ ‭Manager May stated that all the DuPage communities are discussing‬ ‭when to move forward due to the upcoming election. All the communities‬ ‭are moving forward.‬ ‭b.‬ ‭Trustee Nero would like to move forward.‬ ‭c.‬ ‭Trustee Barker would like to open this up to having discussions at many‬ ‭meetings as possible for the public to attend and ask questions.‬ ‭d.‬ ‭Trustee Guzzo remarked that this is just the status quo and we will have it‬ i‭n place when the State removes their tax.‬ ‭e.‬ ‭Manager May stated it would be on the agenda for the 2nd meeting in‬ ‭February.‬ ‭D.‬ ‭Director Altic presented on funding for the Fire Station Facility. (see attached)‬ ‭a.‬ ‭A tax increase of 0.5% was discussed and the estimate of $18 million for‬ ‭the fire station, with a $30 million bond to move forward in a year or two.‬ ‭So, in talking with the villages bond advisor, the debt service on an $18‬ ‭million bond issuance is about $1.3 million in annual debt service over‬ ‭that 20-year time frame. So, that's the funding source that we got to come‬ ‭up with is $1.3 million annually over 20 years. And so then one thing I‬ ‭want to point out here is if that cost goes above that $18 million mark for a‬ ‭20-year bond, you're looking at about almost $100,000 in annual debt‬ ‭service. So that 1.3 becomes 1.4. So that's kind of the cost of a million‬ ‭dollars if we go over that $18 million mark.‬ ‭b.‬ ‭Ordinance needs to be passed by the state deadlines.‬ ‭c.‬ ‭Trustee Guzzo asked about the current rate of municipal bonds. Director‬ ‭Altic stated that 3.5-4% would be a guess.‬ ‭d.‬ ‭Mayor Gunter questioned the possibility of the bond refunding issuances‬ ‭and redemption opportunities, and the general/alternate bonds.‬ ‭Discussion ensued.‬ ‭e.‬ ‭Food for Thought - CUSD201 will have their referendum in the Spring.‬ f‭.‬ ‭AVM Parker asked for a decision as to which date is preferred, March or‬ ‭September. The final direction is to wait for September.‬ ‭VIII.‬ ‭REPORTS‬ ‭A.‬ ‭Committee Chairperson - None‬ ‭B.‬ ‭Village Manager‬ ‭■‬ ‭Elected/Appointed Officials - upcoming review‬ ‭a.‬ ‭Trustee Matt Scales‬ ‭b.‬ ‭PZ Commissioner John Simpson‬ ‭c.‬ ‭Clerk Ginny Szymski‬  ‭d.‬ ‭Clerk Amanda Szymski‬ ‭There will be an executive session in February to review‬ ‭everything for new trustees.‬ ‭■‬ ‭Shared Services -‬ ‭a.‬ ‭Fleet Maintenance - Discussing with Oak‬ ‭Brook‬ ‭and working towards an IGA.‬ ‭b.‬ ‭Clarendon Hills - receptive to shared services‬ ‭c.‬ ‭Consolidation- union stations were reviewed‬ ‭d.‬ ‭Discussion of shared services re: fuel‬ ‭■‬ ‭Boundary Agreements - expired‬ ‭a.‬ ‭Downers Grove- north end by radio towers‬ ‭b.‬ ‭Willowbrook - expired‬ ‭c.‬ ‭Westmont/Willowbrook/Darien agreement‬ ‭■‬ ‭Involuntary Annexations‬ ‭1.‬ ‭History - 44 parcels to date since 2018‬ ‭2.‬ ‭Area 7 - Birchwood Ct.‬ ‭3.‬ ‭Area 8 - 59th/Richmond‬ ‭4.‬ ‭Area 9 - S Richmond (Darien & Willowbrook)‬ ‭5.‬ ‭Service Organization Signs - Director Ries discussed‬ ‭the signs and the possibilities of adding information. The‬ ‭policy for civic/religious organizations was reviewed. (see‬ ‭attached)‬ ‭■‬ ‭Snow and salt - public right away was reviewed.‬ ‭1.‬ ‭Tobacco Compliance check was perfect, no one sold‬ ‭to the underage agent.‬ ‭IX.‬ ‭MISCELLANEOUS - none‬ ‭X.‬ ‭ADJOURN‬ ‭Motion by Nero and second by Barker‬ ‭(next meeting is scheduled for February 20, 2025)‬ Village of Westmont Administration Finance Committee January 9, 2025 4:30pm  GROCERY TAX General Background ● Repeal of the 1% statewide grocery sales tax effective 1/1/2026. ● ● Non-home rule communities have the authority, without the need for referendum approval, to implement a local 1% grocery tax for implementation no earlier than 1/1/2026. ● Authorizing Ordinance passed by Village and remitted to Illinois Department of Revenue (IDOR).  GROCERY TAX Eligible Items Subject to the Tax 1. Food for human consumption off site from where sold 2. Infant formula 3. Vitamins & Supplements with NO medicinal claims 4. Does not apply to alcohol 5. Does not apply to food infused with cannabis 6. Does not apply to candy 7. Does not apply to food prepared for immediate consumption 8. Does not apply to food prepared to order or for takeout or delivery 9. Does not apply to grooming and hygiene products  GROCERY TAX Impact to the Village ● Aldi | Amazon Fresh | Jewel - Osco | Marianos | Nature’s Best | Standard Market ● Could apply to other stores like gas station, specialty markets, & convenient stores ● ≈ $1 million dollar impact to Village revenues  GROCERY TAX Tax Implementation Timeline ● Authorizing Ordinance to Village Board no later than September 2025 ● Must be in IDOR’s hands no later than October 1, 2025 ● Into effect no earlier than January 1, 2026 ●  Fire Station Facility Funding Cost of Fire Station ● Cost of a new fire station ≈ $18 million ○ Scope of the project has not been determined yet ○ Location has not been determined ■ Purchase of another location could add a few million dollars to the cost ● Annual Debt Service on $18 million bond issuance paid over twenty (20) years ○ ≈ $1.3 million annual debt service payment ○ Each additional $1 million in issuance needed adds ≈ $80,000 to annual debt service ● Annual Debt Service on $18 million bond issuance paid over ten (10) years ○ ≈ $2.2 million annual debt service payment for ten (10) years ○ Save about $4.5 million in interest over the life of the bond (10 years less interest) ○ Each additional $1 million in issuance needed adds ≈ $130,000 to annual debt service  Fire Station Facility Funding How to Fund ● Need a dedicated revenue stream of at least $1.3 million annually ○ To match annual debt service required on bond issuance ● Additional Non-home rule sales tax is the best solution ○ Village already has ½% (.50%) tax dedicated to Stormwater since 2015 ○ Recent state legislation allows non-home rule communities to approve an ordinance (no referendum needed) up to 1% for local non-home rule sales tax. ○ Additional ½% (.50%) sales tax would generate ≈ $2.2 million annually ○ This would pay for up to $18 million bond issuance over 10 years. Municipal Imposed Sales Tax Municipal Imposed Sales Tax  Fire Station Facility Funding Limitations on Non-Home Rule Sales Tax ● Public Infrastructure ● Property Tax Relief ● Village operations - only through July 1, 2030 ● Statute defines Public Infrastructure as: ○ Municipal roads and streets ○ Access roads, bridges, and sidewalks ○ Water and sewer line extensions ○ Water distribution and purification facilities ○ Storm water drainage and retention facilities  Fire Station Facility Funding Implementation Timeline - Non Home Rule Sales Tax ● Village ordinance passed and to IDOR in MARCH for JULY 1 Start ● Village ordinance passed and to IDOR in SEPTEMBER for JANUARY 1 Start Gateway Signage Discussion Gateway signs: Background The Village developed plans for gateway signage in 2017. Since then, gateway signs have been installed in 3 locations: - 63rd/Richmond - 67th/Cass - Ogden/Cumnor Other locations have been identified: - Ogden/Rt. 83 - 35th/Cass Gateway Signs: Designs and Options Requests for Civic Organization Signage The Village has received requests to allow civic organization signage. Discussion points: Criteria to determine which organizations are allowed? One central location or multiple locations? Who pays for the signs? Example signs Costs Gateway signs: Next steps Do we want to accommodate civic organization signage? Any re-design of the original sign proposals? Focus area: Ogden/Rt 83 or 35th/Cass?