Dupage Policy Journal

City of Elmhurst Finance Council Affairs & Administrative Services Committee met Oct. 15

Here are the minutes provided by the committee:

1. Call to Order

Vice Chair Jensen called the meeting to order at 7:00 p.m.

2. Roll Call 

Committee Members Present: Jensen, Nudera, Irby

Committee Members Absent: Talluto

Other Elected Officials Present: Curran

City Staff and Others Present: Coyle, Bruns; Dan Virgil

3. Public Comment – None.

4. Receipt of Written Communication – None.

5. Business Before the Committee

A. Minutes of the September 23, 2024, meeting of the Finance, Council Affairs & Administrative Services Committee

A motion to approve the minutes of the September 23, 2024, FCA&AS Committee meeting was made by Alderman Nudera and seconded by Alderman Irby. A voice vote was taken, and the minutes were approved unanimously.

B. 2025 Budget – Key Revenue Assumptions

Director Coyle presented the performance and expectations of several key revenues so that the Committee could provide input on the assumptions ahead of the forthcoming 2025 budget review by City Council. Current 2024 projections indicate the City will receive $15.7 million in sales taxes, which is a record high level for the City. Staff is conservatively budgeting 2025 sales tax revenue equal to the 2024 estimated revenue. Home Rule Sales tax revenue budgeted for 2025 is being projected at a 2.4% increase from the 2024 estimated total, which matches the average increase from 1994-2022. The City is planning to budget Income Tax conservatively by using the median of the 2024 estimated total and the 2025 budgeted per capita projection provided by the Illinois Municipal League (IML). The City is also following the IML forecast for 2025 Motor Fuel Tax and Use Tax projections. It was noted that Use Tax is budgeted with a decrease due legislative changes at the state level. Additional revenues discussed include utility taxes, building permits, vehicle licenses and real estate transfer tax. Additional revenue assumptions will be presented to the Committee at the next meeting.

C. 2024 Preliminary Property Tax Levy

The Committee had a preliminary discussion of the 2024 property tax levy. Director Coyle provided a preliminary proposed levy which includes actuarially determined increases for the Fire and Police pensions, as well as a 5% increase to the general levy for increased IMRF and Social Security costs. The increase is necessitated by a shift in public works salaries from the Motor Fuel Tax (MFT) fund into the General Fund. The shift will allow the City to dedicate more MFT funds to road projects. The proposed levy continues full abatement of the debt service levies. Director Coyle also presented an example of the levy impact on a median Elmhurst home. Accounting for the City’s EAV growth, the estimated impact results in a marginal increase to an average tax bill as a result of the proposed levy. However, the amount is in line with the taxes paid to the City from the 2021 levy, after realizing slight decreases with the 2022 and 2023 levies due to overall EAV growth.

6. Other Business

Director Coyle shared that the second general obligation bond audit being conducted by the Internal Revenue Service was complete and closed without any findings.

It was noted that the next meeting of the Finance Committee will be on October 28th, and that Committee of the Whole meetings to review the 2025 Budget will begin next Monday, October 21st after the regular City Council meeting.

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 7:48 p.m.

https://go.boarddocs.com/il/coe/Board.nsf/Public