City Council Planning Sessions

Monday, Sept. 9, 2024 I. 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 Councilwoman Bray-Parker Councilman Brown Councilman Clousing Councilwoman Robbins Councilman Weller Absent: Councilman Barbier City Staff Present: Michael G. Dzugan, City Manager Robert Lehnhardt, Director of Finance Joseph Tebrugge, Director of Engineering Sarang Lagvankar, Senior Project Engineer Vince Laoang, Director of Public Works Sean Walsh, Assistant Director of Public Works Al McMillen, Water Superintendent Nathan Plunkett, Street Superintendent Halie Cardinal, Public Relations Coordinator Present Electronically: Samuel Webb, Fleet Superintendent II. Approval of Planning Session Minutes – August 26, 2024 The City Council approved the August 26, 2024, City Council Planning Session Minutes. III. Public Comments Susan Caulfield Maddux, 2026 Driving Park Road, and her brother Michael Caulfield expressed concerns about the placement of sidewalks slated to be installed near her home, as the proximity to the house could create privacy and safety issues. IV. 2025-2029 Capital Improvement Plan Director of Finance Lehnhardt stated that the 2025-2029 Capital Improvement Plan, a long-term planning tool, provides a comprehensive outlook on the City’s infrastructure and capital needs. From 2019-2024, the City spent an average of $16.4 million annually for infrastructure and capital projects. He noted that the City received $10 million in grant funding for projects from 2021-2024, and the City projects receiving $1.25 million in grant funding for 2025-2029 projects. Monday, Sept. 9, 2024, CITY COUNCIL PLANNING SESSION MINUTES Director of Finance Lehnhardt reviewed projected spending by project type for 2025-2029. The City projects spending $23.4 million for road improvement projects, $21 million for storm sewer projects, $14.4 million for water improvement projects, $11.3 million for facility improvements, and $8.7 million for sanitary sewer improvements. He noted that all 2025 capital projects featured in the presentation have available reserves and are within the current revenue structure. For 2025 bridges and culverts projects, Director of Finance Lehnhardt stated that the cost is projected to be $600,000 and the funding source is the Capital Projects Fund. Senior Project Engineer Lagvankar summarized the estimated $600,000 in projected work for 2025 bridges and culverts projects, which include Manchester Road and Wesley St. Bridge maintenance work at $500,000 and the Butterfield Road Pedestrian Bridge maintenance work at $100,000. He noted that the ongoing Roosevelt Road Pedestrian Bridge work may extend into 2025. For 2025 road projects, Director of Finance Lehnhardt stated that 2025 road projects are estimated to cost $6.2 million. He stated that staff are currently working on a Pavement Management Analysis Report and its findings may impact the projected expenses. Senior Project Engineer Lagvankar stated that staff will review the report and begin reconstruction and resurfacing work in priority areas based on its findings about current pavement conditions. He stated that 8 miles annually is the optimal amount of pavement work to maintain the City’s pavement network. Primary road projects that are expected to be included for 2025 include resurfacing, Gary Ave. reconstruction, Gables Boulevard reconstruction, and concrete street resurfacing. In response to Council questions, Senior Project Engineer Lagvankar stated that the Gary Ave. reconstruction work is anticipated to occur in the spring. He stated it is a complex project due to the location of utilities and permitting requirements. The goal is for utility relocation work to be completed prior to winter. Street Superintendent Plunkett reviewed the capital projects that the Street Division plans to complete, including milling, paving, and surface overlays in-house in coordination with the Engineering Department and Water Division. Prioritized capital projects include the maintenance of roads and sidewalks to keep them safe. In response to Council questions, Street Superintendent Plunkett stated that the City is about two-thirds of the way through replacing coach lanterns with LED streetlights, with 522 fixtures remaining for replacement. The Street Division milled and resurfaced 4 miles of roads in 2024. For 2025 sanitary sewer projects, Director of Finance Lehnhardt stated that the City anticipates completing projects at a cost of approximately $5.2 million. He stated that staff are currently working on a Sanitary Sewer Funding Analysis to determine operational and capital needs. Assistant Director of Public Works Walsh stated that primary sanitary sewer projects planned for 2025 include the Blacksmith Lift Station rehabilitation, Albright Lift Station rehabilitation, Basin 3 & 4 discharge replacement, sewer main rehabilitation, Basins 3 & 4 grouting, manhole rehabilitation, and the Sanitary Sewer Reimbursement Program. For storm sewer projects, projects planned over five years total $21 million, and Director of Finance Lehnhardt stated in 2025, the City has planned $2 million in projects. Assistant Director of Public Works Walsh stated that primary 2025 storm sewer projects planned include the Storm Sewer Replacement Program and the Lake A Pump Station rehabilitation. Director of Engineering Tebrugge stated that in 2025,  Monday, Sept. 9, 2024, CITY COUNCIL PLANNING SESSION MINUTES Engineering will focus on the following storm sewer projects: the Glendale Ave. Flood Improvement Project, 2025 Road, Sewer, & Water Program, North Main St. Dredging Project, and Thomas Road Drainage Project. In response to Council questions, Director of Engineering Tebrugge stated that the Engineering Department plans to start measuring sediment to gauge if dredging projects can be postponed to the future. He stated the culverts at Gary Ave. cannot be modified due to downstream impacts. For water capital projects, Director of Finance Lehnhardt stated that the City is planning $14.4 million in projects over the next five years, and for 2025, there are projects planned at a total projected cost of $3 million. Staff plan to conduct a Risk-based Analysis in 2025 to refine plans for funding and projects. Water Superintendent McMillen stated that primary 2025 water projects planned include the Lead Service Line Replacement Program, Water Main Replacement Program, President Pump Station improvements, and flow control valve replacement. In response to Council questions, Water Superintendent McMillen stated that residents have generally cooperated with the Lead Service Line Replacement Program. He stated that despite the flow control valves’ age, none have failed yet. However, the planned valve replacement is necessary to avoid a failure situation. For sidewalk-related capital projects, the City is projecting $7.3 million in projects over the next five years, with $2.3 million projected for 2025 sidewalk-related projects. Director of Engineering Tebrugge stated that the primary projects are the New Sidewalk Program and the Sidewalk Replacement Program. At this pace, the City projects completing its goal of installing a sidewalk on one side of each street in Wheaton by 2027. For facilities projects, Director of Finance Lehnhardt stated the City has planned projects over the next 5 years at a total projected cost of $11.3 million, with $5.5 million in projects planned for 2025. He stated that staff are currently working on a Facilities Assessment Study to determine operational and capital needs. Projects include the following: the Fire and Police generator replacements, library replacements of the roof and West Side Plaza, Water Division building renovations, and the City’s fueling facility renovation. Council members discussed the potential of considering streetscape projects at College Ave. and other areas near businesses across the City. V. 2025 Budget Framework City Manager Dzugan stated that staff have prepared the revenue and expenditure framework for the development of the 2025 Budget. He noted that a major area of concern is the grocery tax because the state of Illinois is ending the 1% statewide grocery tax on Jan. 1, 2026. This tax generates $1.5 million in annual revenue for the City of Wheaton. If the City wants to retain the grocery tax, the City will need to pass an ordinance by mid-2025, and staff is seeking direction from the Council. Director of Finance Lehnhardt stated that staff considered essential services and programs as central focuses of the 2025 Budget Framework. He stated that the Property Tax Levy has remained flat for the past five years and there have been no increases in sanitary sewer rates since 2007 and no increases in storm water rates since 2018. He stated that pressure points within the 2025 Budget include personnel and pension costs; vehicle replacement costs; infrastructure replacement costs; and library property tax revenues. Additional pressure points include the Sanitary Sewer, Storm Sewer, Fleet Services, and Building Renewal Funds.  Monday, Sept. 9, 2024, CITY COUNCIL PLANNING SESSION MINUTES Director of Finance Lehnhardt stated that the City estimates having a $1.1 million surplus in revenues for 2024, which is a projected fund balance of 43.9% of operating expenditures. He stated that 2024’s General Fund has an overall increase of $1.6 million in revenues. Since 2021, Director of Finance Lehnhardt stated that sales tax revenue has steadily increased, and this trend is projected to continue through 2025. In terms of income tax, from 2020-2022 the City had significant growth in this revenue source. However, 2024-2025 are projected to have income tax revenues level. The City’s use tax is anticipated to reduce due to the Leveling the Playing Field Act (2021 online sales tax) and 2025 new sales tax legislation. He stated that the City projects an increase of $500,000 in expenditures for 2024. He stated that the property tax levy will remain flat in 2024. Director of Finance Lehnhardt stated that the 2025 Budget is projected to have a balanced budget of $55.6 million, which is a fund balance of 42.6% of operating expenditures. In response to a Council question, Director of Finance Lehnhardt stated that staff will make recommendations on the uses of the 2025 budget surplus based on the Council’s direction. He stated that in 2025, the General Fund is projected to have an overall increase of $100,000 in revenue. He stated that the City is projected to have an increase of $1.2 million in expenditures for 2025. If the City adopts an ordinance to maintain the grocery sales tax, Director of Finance Lehnhardt stated that 2026 is projected to have a surplus in revenue of $800,000. However, 2027-2029 are projected to have expenditures exceed revenues. If the City does not continue the grocery sales tax, expenditures are projected to exceed revenues from 2026-2029. In response to Council questions, City Manager Dzugan stated that there are options to reduce the amount needed from the General Fund to subsidize areas where the City is not recouping costs for services, such as increasing fees. Director of Finance Lehnhardt stated that staff are continuing to monitor the Parking Fund. Council members discussed the grocery sales tax and expressed support for its continuation in the City of Wheaton after the state of Illinois eliminates it in 2026. Council members directed staff to draft an ordinance for a locally imposed 1% grocery sales tax. VI. City Council/Staff Comments Councilman Weller expressed his appreciation for the Union Pacific “Big Boy” No. 4014 steam locomotive passing through Wheaton on Monday, Sept. 9. Mayor Suess invited the community to attend the September 11 Remembrance Ceremony on Wednesday, Sept. 11, at Memorial Park. He also thanked Cosley Zoo for hosting the Woodland Wonder Cosley Zoo Gala on Saturday, Sept. 7, which honored their 50th anniversary. VII. Adjournment The meeting was adjourned at 8:08 p.m. Respectfully submitted, Halie Cardinal