City of Elmhurst Finance Council Affairs & Administrative Services Committee met Sept. 25
Here are the minutes provided by the committee:
1. Call to Order
Chair Talluto called the meeting to order at 7:04 p.m.
2. Roll Call
Committee Members Present: Talluto, Jensen, Nudera, Irby
Committee Members Absent:
Other Elected Officials Present: Curran
City Staff and Others Present: Coyle, Bruns
3. Public Comment – None.
4. Receipt of Written Communication – None.
5. Business Before the Committee
A. Minutes of the September 11, 2023, meeting of the Finance, Council Affairs & Administrative Services Committee
A motion to approve the minutes of the September 11, 2023, FCA&AS Committee meeting was made by Alderman Jensen and seconded by Alderman Nudera. A voice vote was taken and the minutes of the September 11, 2023, FCA&AS Committee meeting were approved unanimously.
B. Estimated Tax Resolution
Director Coyle presented to the Committee a resolution with the estimated property tax levy, which the City is required to pass not less than 20 days prior to adoption of the 2023 Tax Levy Ordinance. The amount of the estimated property tax is determined in accordance with a City policy established in 2013, which dictates the estimate be determined by the prior year’s levy adjusted by the lesser of June CPI-U or 5%. The Committee discussed the estimated levy and agreed that the resolution should be placed on the consent agenda at the next City Council Meeting.
C. Line of Credit Renewal
Director Coyle informed the committee that the City’s line of credit, which has a limit of $10.0 million, is set to expire on October 31st and that staff has received a term sheet from Fifth Third Bank to renew the agreement for another two years under the existing terms. Currently, the City has utilized $5.225 million of the credit line comprised of draws from TIF IV ($1.375M), TIF V ($1.7M), and TIF 6 ($2.15M). The LOC has provided a very flexible, short-term funding source for the TIF districts which allows for repayment as incremental tax revenue becomes available. The current LOC carries an adjustable interest rate based on the one-month SOFR (Secure Overnight Financing Rate) rate, plus 72 basis points. The agreement also includes an unused loan balance fee of 20 basis points which is charged on the unused portion of the LOC. After discussion and consideration, it was the consensus of the FCAAS Committee to recommend a renewal of the LOC agreement under the terms provided as they remain unchanged from the current terms. A draft report will be distributed to the Committee for approval and sent to City Council for consideration. A motion to approve the renewal was made by Alderman Jensen and seconded by Alderman Nudera. Roll Call vote: 4 ayes, 0 nays. Motion duly carried.
6. Other Business
The Committee discussed the status of the pending referral list, as well as the timeline for the Committee to evaluate the financial condition of the Parking Fund. Chair Talluto indicated she anticipates the Committee will begin review of both topics in the early part of next year.
7. Adjournment
A motion to adjourn was made by Alderman Irby and seconded by Alderman Nudera. Motion carried by unanimous voice vote.
The meeting was adjourned at 7:22 p.m.
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