City of Elmhurst Finance Council Affairs & Administrative Services Committee met Dec. 8
Here are the minutes provided by the committee:
1. Call to Order
Chair Talluto called the meeting to order at 7:02 p.m.
2. Roll Call
Committee Members Present: Talluto, Nudera, Hill, Virgil
Committee Members Absent:
Other Elected Officials Present: Curran (7:05)
City Staff and Others Present: Coyle, Bruns, Kravets; Anthony Miceli, Speer Financial
3. Public Comment
None.
4. Receipt of Written Communication
None.
5. Business Before the Committee
A. Minutes of the November 24, 2025, meeting of the Finance, Council Affairs & Administrative Services Committee
A motion to approve the minutes of the November 24, 2025, FCA&AS Committee meeting was made by Alderman Virgil and seconded by Alderman Hill. A voice vote was taken, and the minutes were approved unanimously.
B. Discussion of minutes of meetings lawfully closed under the Open Meetings Act, whether for purposes of approval by the body of the minutes or semi-annual review of the minutes as mandated by Section 2.06 of the Open Meetings Act 5 ILCS 120/2(c)(21). Attorney recommendation – minutes are to remain closed: May 12, 2014, February 8, 2016, September 25, 2017, January 8, 2018, February 10, 2020, February 27, 2023, March 13, 2023, and May 27, 2025.
It was noted that the City Manager reviewed the recordings for the executive session minutes, as was requested by the Committee in May and the recommendation is for the minutes to remain closed. Alderman Virgil questioned if some of the minutes should be released and will follow up with the City Manager for discussion. A motion was made by Alderman Nudera and seconded by Alderman Hill to approve keeping the executive session minutes closed. Roll Call vote: 3 ayes, 1 nay. Motion carried.
C. Special Service Area Levies
The Committee reviewed the 2025 property tax levies for the City’s three Special Service Areas (SSA). Director Coyle explained that SSA #6 collects funding for City Centre operations, based on the annual appropriations ordinance, SSA #13 is for an infrastructure recapture for a small area in the south of Elmhurst, and that SSA #16 provides a mechanism for the Virginia Lane Townhomes to fund its appropriations in the absence of a homeowner’s association. It was noted that SSA #16 expires next year and the City will need to evaluate whether a new SSA should be established. No action was required by the Committee.
D. Police Station Bonds
The Committee discussed debt issuance for construction of a new police station, as outlined in the funding model approved by Council. This model includes issuing two tranches of general obligation bonds, with the first tranche now ready as architectural design begins. The City’s financial advisor, Speer Financial Services, attended the meeting to address questions regarding the issuance. The original $3.5 million bond proposal, based on a 3.58% true interest cost, has been updated to reflect a lower estimated rate of 3.21%, potentially saving $40,500 over five years. Additionally, the City is eligible to refund its 2015 bonds, which could yield $325,000 in present value savings, exceeding the 2% threshold in the City’s debt policy. This refunding would be combined with the new issuance, with a preliminary schedule targeting a March closing. To preserve the City’s ability to reimburse itself with future bonds proceeds related to the project, it was recommended that a reimbursement resolution be passed. The Committee discussed the resolution and supported the action. A motion was made by Alderman Virgil and seconded by Alderman Hill to approve a report recommending that City Council direct the City Attorney to prepare the appropriate resolution. Roll Call vote: 4 ayes, 0 nays. Motion carried.
E. Report – Hotel Tax
Director Coyle presented a report recommending the City increase the hotel/motel tax rate by one percent (1%) as an additional funding source for the police station project. On December 9, 2024, the Finance Committee approved a report which recommended a funding structure for the police station project. Part of the funding model for the new police facility included a 1% increase to the City’s hotel/motel tax, with the proceeds going towards future debt service of the police station. The City has begun the process of designing the new police station and is working through the bond issuance process for the first $3.5 million of general obligation bonds associated with the project, therefore it is now appropriate for the City to increase the hotel/motel rate. A 1% increase was forecast to generate $117,500 annually towards debt service. The Committee discussed the proposed increase and noted this will bring the City’s rate to the statutory cap of 5%. A motion was made by Alderman Hill and seconded by Alderman Nudera to approve the report recommending that that the City Council approve a one percent (1%) increase to the hotel/motel tax rate. Roll Call vote: 4 ayes, 0 nays. Motion carried.
F. Report – Audit Contract
Director Coyle presented a report to the Committee regarding Audit Services for fiscal years 2025-2029. At the end of October, staff sent a request for proposals to seven audit firms and posted to request on the City website. The City received proposals from two of the firms contacted and two firms that found the proposal on the City website. Based on a thorough review of proposals, staff recommended that Sikich as the most qualified firm to provide audit services. As the incumbent auditor, Sikich has consistently delivered professional and timely audits, supported the City through the implementation of complex accounting standards, and contributed to the City’s continued receipt of the GFOA Certificate of Achievement for Excellence in Financial Reporting. The firm’s extensive experience in government and other sectors, along with its dedicated tax department, has proven beneficial as a resource. Although Lauterbach & Amen proposed lower fees, averaging $1,200 less annually, the Committee discussed that Lauterbach is the City’s current actuary and that the City would need to switch actuaries if Lauterbach was chosen as the auditor. The Committee noted that the amount budgeted for the audit in 2026 was $58,400 and that the contract with Sikich would result in savings from budget of $7,440, across all funds. A motion was made by Alderman Virgil and seconded by Alderman Hill to approve a report recommending that City Council approve a contract for auditing services with Sikich CPA LLP. Roll Call vote: 4 ayes, 0 nays. Motion carried.
G. Municipal Utility Fund Revenues
Director Coyle presented updated Operating and CIRC forecasts for the Municipal Utility Fund based on Committee feedback provided at the prior meeting. Director Coyle noted the rate recommendations compare favorably to the rates projected in the 2023 rate study. The budget and forecast presented include raising the DuPage Water Commission Rate to the current rate of $5.80 being charged to the City but does not propose a rate increase for the Elmhurst water and sewer rates. Director Coyle also went over the CIRC and phosphorus forecast with the Committee. The Committee discussed the estimated capital payments from Illinois American for Bundle 5 and Bundle 6, noting they are not a guarantee as the current agreement will be expiring and require renegotiation. A motion was made by Alderman Nudera and seconded by Alderman Virgil to approve the proposed rate increases, recommending a March 1, 2026 effective date, and directing staff to prepare a report for City Council. Roll Call vote: 4 ayes, 0 nays. Motion carried.
6. Other Business
The Committee noted that the December 22 meeting will be cancelled.
7. Adjournment
A motion to adjourn was made by Alderman Hill and seconded by Alderman Nudera. Motion carried by unanimous voice vote.
The meeting was adjourned at 8:27 p.m.
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