City Council Planning Sessions

Monday, October 11, 2021 1. Call to Order The Wheaton City Council Planning Session was called to order at 7:00 p.m. by Mayor Suess. The following were: Physically Present: Mayor Suess Councilman Barbier Councilman Brown Councilwoman Fitch Councilwoman Robbins Councilman Weller Absent: Councilwoman Bray-Parker City Staff Physically Present: Michael Dzugan, City Manager Robert Lehnhardt, Director of Finance Daniel Peck, Public Relations Coordinator 2. Approval of September 27, 2021 Minutes The Council approved the September 27, 2021 City Council Planning Session minutes. 3. Public Comment There were no public comments. 4. 2021 General Purpose and Debt Property Tax Levy – Estimate Director of Finance Lehnhardt presented an overview of the 2021 estimates for the City’s three property tax levies that consist of the 2021 General Purpose and Debt Property Tax Levy, the 2021 Special Service Area #3 Streams Property Tax Levy, and the 2021 Special Service Area #8 Downtown Promotional and Municipal Services Property Tax Levy. Director of Finance Lehnhardt stated that the City is required by the Truth in Taxation Act Illinois State Statute to estimate the amount of taxes to be levied at least 20 days prior to the adoption of the tax levy. If the proposed levy increase is greater than 5%, the City is required to publish a notice and conduct a public hearing prior to the adoption of the levy. He stated that the City is required to file with the County Clerk by the last Tuesday in December, but any adopted levy can be abated by any amount by March 2022. Director of Finance Lehnhardt stated that the property tax levy also includes a 1% increase to the City’s adopted levy that DuPage County adds to account for uncollectable taxes, assessment appeals, and refunds. He stated that the additional 1% added to the levy is collected by DuPage County and given to the City. OCTOBER 11, 2021 CITY COUNCIL PLANNING SESSION MINUTES Director of Finance Lehnhardt provided an overview of a typical resident’s 2020 property tax bill and stated the City’s portion of property tax revenue is 12.5% and has decreased slightly over the years from 13.0% in 2017. Director of Finance Lehnhardt provided an overview of the City’s 2020 equalized assessed value (EAV) and stated that the City’s EAV was approximately $2.3 billion with residential properties representing 83.9% of that value and commercial (15.6%), industrial (.4%), and railroad (.1%) properties making up the remainder. He stated that the EAV is established by the Milton Township Assessor. In response to questions from Council, Director of Finance Lehnhardt stated that multi-family housing units are considered residential in the EAV. Director of Finance Lehnhardt stated that the Milton Township Assessor does not include tax-exempt properties in their valuation. He stated 17.5% of the parcels within the City are considered tax-exempt parcels. Director of Finance Lehnhardt provided an overview of the adopted levy compared to the extended levy for 2020 and 2021. The 2021 proposed levy is $20,459,855 with an extended levy of $20,666,1117, which includes the 1% added to the proposed levy that DuPage County adds to account for uncollectable taxes, assessment appeals, and refunds. Director of Finance Lehnhardt presented the proposed 2021 General Purpose and Debt Levy. The proposed adopted General Purpose extended levy is $12,442,052, which is an 8.7% ($1,189,532) decrease from the 2020 extended levy. The proposed adopted 2021 Debt Service extended levy is $4,111,544, which is a 36.9% ($1,108,894) increase from the 2020 extended levy due to the 2021 Pension Obligation Bond Issue. City staff is recommending a flat General Purpose and Debt Levy with no levy increase from 2020 to 2021. Director of Finance Lehnhardt highlighted that the City has maintained a flat levy for 3 consecutive years. Director of Finance Lehnhardt provided an overview of the financial impact of the proposed levy. He stated that the financial impact depends on the EAV change of individual assessed property values. Using an assumption of a 2% base growth increase in EAV, the proposed levy would provide a slight decrease from 2020 to 2021 for property owners. 5. 2021 SSA 3 Streams Property Tax Levy – Estimate Director of Finance Lehnhardt presented the proposed 2021 Special Service Area #3 Streams Property Tax Levy. The proposed extended levy is $12,128, which is the same as the 2020 extended levy. 6. 2021 SSA 8 Downtown Promotional & Municipal Services Property Tax Levy-Estimate Director of Finance Lehnhardt presented the proposed 2021 Special Service Area #8 Downtown Promotional and Municipal Services Property Tax Levy. The proposed extended levy is $278,726, which includes the Special Service Area #8 extended levy of $159,106 and $119,620 of incremental tax revenue generated from TIF District #2. 7. Board, Commission and Committee Review City Manager Dzugan provided an overview of a proposed approach for the Council to review and establish a reporting mechanism for each of the City’s different boards, commissions, and committees. He stated that to accomplish a consistent approach to the review, City staff suggests that the City Council initially OCTOBER 11, 2021 CITY COUNCIL PLANNING SESSION MINUTES review the general provisions applicable to all boards, commissions, and committees; and review each purpose statement and coinciding action items to carry out those purpose statements. The Council requested that the boards, commissions, and committees’ finances also be reviewed. City Manager Dzugan presented suggested changes to the general provisions that would be applicable to each board, commission, and committee. The three areas of change include: requiring all members to be Wheaton residents while grandfathering those who are not as of the date of the amending ordinance; requiring Council approval for any amendments or changes to bylaws; and establishing an annual reporting requirement that reports previous year activities while also defining and reviewing action items that carry out the purpose statements for the next year. In response to questions from Council, City Manager Dzugan stated that unincorporated residents would not meet the residency requirement. The Council also desired the term “grandfather” be clearly defined as part of the review and that all have high level by-laws to ensure consistency. City Manager Dzugan provided the Council with the next steps in the process, which includes the City Council reviewing and redrafting the boards, commissions, and committees’ Purpose Statements, Annual Reports, and reviewing previous minutes in order to draft 2022 Action Items. He suggested that City Council approved Purpose Statements and Action Items be then submitted for board, commission, and committee feedback. Following City Council review of their feedback, the Council may then amend City Code Purpose Statements and provide feedback on board, commission, and committee Action Items, if desired. The Council expressed support for the approach as presented and directed staff to begin working with the Band Commission, Bicycle Advisory Commission, and the Community Relations Commission. 8. City Council/City Staff Comments There were no City Council/City Staff comments. 9. Adjournment The meeting was adjourned at 8:49 p.m. Respectfully submitted, Daniel J. Peck