DuPage County Emergency Telephone System Board Ad Hoc Finance Committee met Sept. 14.
Here is the agenda provided by the committee:
1. CALL TO ORDER
9:30 AM meeting was called to order by Chair Greg Schwarze at 10:55 AM.
2. ROLL CALL
PRESENT: Schwarze, Franz, Guttman, Henry, Maranowicz, Srejma
ABSENT:
ETSB STAFF:
Linda Zerwin
Matt Theusch
ATTENDEES:
Jeff Martynowicz - County CFO
Melanie Koga - County Finance (Remote)
On roll call, Members Schwarze, Franz, Guttman, Henry, Maranowicz, and Srejma were present.
3. PUBLIC COMMENT
There was no public comment.
4. CHAIRMAN'S REMARKS - CHAIR SCHWARZE
There were no remarks from Chairman Schwarze.
5. CONSENT AGENDA
A. Minutes Approval
1. Emergency Telephone System Board Ad Hoc Finance Committee - Regular - Wednesday August 10th, 2022
6. PARENT COMMITTEE APPROVAL REQUIRED
There was nothing discussed under this item.
7. FY23 BUDGET
Chairman Schwarze turned the meeting over to Ms. Zerwin. Ms. Zerwin said at the last meeting there was discussion around a cash flow analysis. She said County CFO Martynowicz had prepared a document and turned the meeting over to him.
CFO Martynowicz referred to a handout which showed two past years of actual costs, the FY23 preliminary budget as presented to Finance, and four projected out years. He explained that in FY23, ETSB would be starting with a fund balance of $43M. The breakout showed that with approximate revenues totaling $17.7M, consolidated operational costs of $37.4M, ETSB would be left with a fund balance of $23.3M at the end of FY23. He reviewed the costs in the budget with personnel being rather consistent. Finance factored in commodities and contractual services. He said the outlier is capital, which is a cost Ms. Zerwin provided for five years. In looking at the out years from FY24-FY27, using the projected costs, there could potentially be a negative fund balance at the end of FY27. CFO Martynowicz said what is not factored in is depreciation. Ms. Zerwin said the Melanie Koga, the ETSB accountant in County Finance, maintains a depreciation schedule of equipment. Vice Chair Franz had some questions regarding sources of revenue including trends in the surcharge, the status of the budget at the end of a fiscal year and how that impacts revenue, and grants. A discussion ensued around these items.
Treasurer Henry said this gives them pause to think about where ETSB is and where we are going. Chairman Schwarze questioned the capital outlay increase in five years. Ms. Zerwin explained the contract cycle of the systems from when the buildings opened and talked about utilizing payment plans, when available, to flatten some of those spikes in costs.
CFO Martynowicz said part of the premise of this analysis was the discussion about providing funding to the PSAPs. Vice Chair Franz asked to see the capital outlay again and asked if the $43M was all encompassing or does ETSB have other funds. CFO Martynowicz and Treasurer Henry both confirmed this was the all-in number. Vice Chair Franz then asked what costs are incorporated into the budget. Ms. Zerwin reviewed the 53830-line item with the IGA $3M and 54100/54107/54110 with the new capital requests. Vice Chair Franz said to Chairman Schwarze he thought he was right in that this was a decision to be made each year, in terms of saving for radios or a contribution to the PSAPs, depending on what funds are available. Member Maranowicz said if the funding is available, he would take it, but agreed the Ad Hoc would have to see what the years look like and make a decision moving forward.
Vice Chair Franz questioned that there are no funds for radios in the FY23 budget. Member Maranowicz said they just had a meeting with ACDC agencies and told them five times, in bold and italics, that they have to start saving for radios now, that ETSB is not. He also expressed to them there may be money coming back and ACDC's plan for those funds.
Chairman Schwarze said the proposal is that $1M of the $3M is for FY23 and is contingent upon the signing of an extensive IGA. He said $1M is from this fiscal year which has not yet ended and the other $1M from last year, FY21, which is not common to go back a fiscal year and is dependent upon...Vice Chair Franz finished and said an IGA being completed. Ms. Zerwin said there is also an unexpected cost of about $1.5M for the breaking apart of the CPE which can come out of the equipment replacement fund but is not calculated in there. There is also a question of County procedure and statutory requirements regarding the RFP. Ms. Zerwin reviewed the costs on the spreadsheet and what the money they should be saving is as compared to what they are saving.
Treasurer Henry said she understands the PSAPs want money for their municipalities, but if it endangers and creates a hardship, then they have to questions whether that is the appropriate move. In her review of the cash flow analysis, there is a shortage of $1M in FY27 and she does not think they have a way to recoup that $1M, if they pay out the $3M. She continued saying maybe they need to look at who they are representing and what they are representing, what obligation they have. She said they should not be representing their own towns, as fiduciaries of the system and what is their role as fiduciary. Vice Chair Franz agreed, as did Member Maranowicz.
Member Maranowicz said he does not think they can say the money will be there 100% all the time. He asked, how can they say they are going to give the PSAPs $1M next year when a new huge expense was presented to them an hour ago. He and Vice Chair Franz both stated there is no guarantee. Treasurer Henry said she is not sure they can even guarantee State money, that because of inflation people have had to cut back. That the cell phones they can afford now may be one instead of three. She reiterated she does not think they can even count on money from the State. Member Guttman said he is looking at $2M from the past, $1M now, and who knows after that. Member Maranowicz agreed.
CFO Martynowicz asked what that money would be for. Vice Chair Franz said there is a long history but wrapped up by saying there has been a desire to assist the PSAPs in their biggest expense, which is personnel (the dispatchers). He said in his time on the board, not $1 has gone to assist the PSAPs in those expenses. He believed they are on a track to be able to do that, that consolidation has saved all kinds of money in terms of equipment. He said this is a small token given all the years and the revenue collected and the PSAPs are struggling with their expenses, too. He expressed giving them incentives to make the life of the radios last longer, he thought the current radios could have gone longer, and he said both parties are responsible for the IGA not having been signed over the last years. He said that is his fiduciary responsibility to the PSAPs, that Glen Ellyn is a small piece of that. Treasurer Henry said but if the PSAP comes up short and Glen Ellyn is part of that PSAP, does Glen Ellyn have to fund the money. Vice Chair Franz replied, sure. He said he does not come into the building with his Glen Ellyn or DU COMM hat on. He said, we have two PSAPs, we have to work together. Member Maranowicz said that is why they sat down with their agencies. He told them any monies received from ETSB would be put into an account to save as an equipment replacement fund to share with them and they were all good with that. Treasurer Henry asked him if his agencies had to agree to that for him to do it. Member Maranowicz answered no, that the Addison PSAP is set up differently that the Member agencies pay for service and the PSAP takes on everything else. He just wanted to be transparent and keep them in the loop because they have heard rumors, too.
Treasurer Henry apologized and said she needed to leave. Member Maranowicz said he needed to be leaving, too. Ms. Zerwin asked what else needed to be done for October's meeting. Member Maranowicz said he supports the budget the way it is. Chairman Schwarze wanted to ensure the furniture for new staff, salaries, everything was in there. Ms. Zerwin confirmed, yes. Vice Chair Franz said he thought they covered everything.
8. OLD BUSINESS
There was no old business.
9. NEW BUSINESS
There was no new business.
10. ADJOURNMENT
Vice Chair Franz made a motion to adjourned, seconded by Member Guttman. On voice vote, motion carried.
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