Dupage Policy Journal

City of Elmhurst Finance Council Affairs & Administrative Services Committee met June 10

1. Call to Order

Chair Talluto called the meeting to order at 7:00 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 (Remote), Bruns, Kravets, Grabowski; David Hoover – NIMEC, Kevin Cavanaugh – L&A, Mark Pruitt – ICCAN, Lisa Gerhold-Dirks – Elmhurst Cool Cities Coalition

3. Public Comment – Lisa Gerhold-Dirks from Elmhurst Cool Cities spoke on the municipal aggregation program.  She stated that 5% of energy credits doesn’t move the needle on the reliance of fossil fuels for the City or Illinois.  She stated she would like to see new ideas and goals.

Mark Pruitt, a consultant and former Director of Illinois Power Agency, spoke on the municipal aggregation program.  He provided a handout to committee members with industry information and potential other programs that the Committee could consider.

4. Receipt of Written Communication – As noted above in public comment.

5. Business Before the Committee

A. Minutes of the May 13, 2023, meeting of the Finance, Council Affairs & Administrative Services Committee

A motion to approve the minutes of the May 13, 2024, FCA&AS Committee meeting was made by Alderman Jensen and seconded by Alderman Nudera. Roll Call vote: 4 ayes, 0 nays. Motion duly carried.

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) - Review of the following Executive Session Meeting Minutes to remain closed: May 12, 2014, February 8, 2016, September 25, 2017, January 8, 2018, February 10, 2020, February 27, 2023, and March 13, 2023

A motion recommending the executive session meeting minutes remain closed was made by Alderman Jensen and seconded by Alderman Irby. Roll Call vote: 4 ayes, 0 nays. Motion duly carried.

C. Report - Municipal Aggregation

The City’s aggregation consultant, Mr. David Hoover of Northern Illinois Municipal Electric Collaborative (NIMEC), reviewed renewal options for the program and the current market, recommending that the City accept a proposal from MC2. The proposal from this provider continues 5% renewable energy certificates (RECs). The residents will pay no higher than the ComEd rate under this proposal. The current program is currently set to expire in October, and there are options with the supplier to renew for a 1, 2, or 5 year term. Mr. Hoover explained that as the market has shifted, electric supply has gotten more expensive, and the program is no longer able to guarantee a fixed rate lower than ComEd or achieve higher renewable energy credits at a cost neutral position. The Committee discussed the program and renewal options, acknowledging that a renewal would be less disruptive to residents.  The Committee also discussed the length of a renewal, deciding on a two-year term. The Committee also discussed whether it was necessary for the City Council to suspend the rules to approve the ordinance and report at the next City Council meeting. NIMEC indicated they need contract approval by July 10th to move forward, and based on that date the Committee agreed there was enough time for the report and ordinance to be approved separately, and therefore suspension of the rules should be struck from the final report to Council.

The Committee also discussed a new program known as Community Solar. As part of Illinois' goal to be 100% green by 2050, Illinois has sponsored this program which allows for those in Illinois to enjoy the benefits of solar panels without having to physically install them anywhere on site. The Committee expressed interest in the program but tabled the topic for discussion at a later meeting in the interest of time.

A motion was made to approve the report with modifications, recommending a 2-year renewal of the existing program with MC2, by Alderman Jensen and seconded by Alderman Nudera. Roll Call vote: 3 ayes, 1 nay. Motion carried. The report was passed 3 – 1, with Alderman Irby in dissent. Alderman Irby expressed a desire to prepare a minority report for City Council’s consideration.

D. Police and Fire Pension Actuarial Reports

Kevin Cavanaugh from Lauterbach & Amen (L&A) presented the actuarial reports for the fiscal year ended December 31, 2023 of the Firefighters’ and Police Pension Funds. Mr. Cavanaugh indicated that the total recommended contribution for the funds increased by $420,566 (5.14%) over the prior valuation, driven primarily by demographic changes. Asset returns were greater than expected, providing a positive impact to the recommended contribution. The Committee was also informed of a law change which impacted the Police Pension Plan only, which expands eligibility for surviving spouse benefits. The Committee inquired about the average investment returns of the pension plans, compared with the 6.75% Expected Rate of Return on Investments, and was informed the Fire plan has averaged 6.19% and the Police plan 6.89% over the past 9 years.

6. Other Business

None.

7. Adjournment

A motion to adjourn was made by Alderman Nudera and seconded by Alderman Irby.  Motion carried by unanimous voice vote.

The meeting was adjourned at 8:14 p.m.

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