Dupage Policy Journal

City of Elmhurst Finance Council Affairs & Administrative Services Committee met May 27

Here are the minutes provided by the committee:

1. Call to Order

Chair Talluto called the meeting to order at 7:01 p.m.

2. Roll Call 

Committee Members Present:

Talluto, Nudera, Hill, Virgil

Committee Members Absent:

Other Elected Officials Present:

City Staff and Others Present:

Coyle, Grabowski, Kravets, Bruns, Kevin Cavanaugh from Lauterbach & Amen

3. Public Comment

None.

4. Receipt of Written Communication

None.

5. Business Before the Committee

A. Minutes of the May 12, 2025, meeting of the Finance, Council Affairs & Administrative Services Committee

A motion to approve the minutes of the May 12, 2025, FCA&AS Committee meeting was made by Alderman Hill and seconded by Alderman Virgil. 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) - 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

The Committee entered closed session to discuss the Executive Session Meeting Minutes and whether they should remain closed.

C. Fire and Police Actuary Report

Kevin Cavanaugh from Lauterbach & Amen (L&A) presented the actuarial reports of the City of Elmhurst Fire Pension and Police Pension Funds for the fiscal year ended December 31, 2024. Mr. Cavanaugh indicated that Fire is currently 71.70% funded and Police is currently 67.67% funded, compared to the State average of 64%. Total recommended contribution for the funds increased by $689,804 (8.02%) over the prior valuation, driven primarily by demographic and assumption changes. Chair Talluto requested that more granular details of the assumption changes be provided. L&A will prepare an additional exhibit with this breakdown, deliverable in a few weeks. Asset returns were greater than expected, providing a positive impact to the recommended contribution. The rate of return on investments, net of administrative expense, was approximately 10.73% for Fire and 12.60% for Police compared to the expected rate of return of 6.75%. The Committee discussed the City’s contribution funding policy which is includes a 100% funding target over a layered amortization period of 15 years. This method projects fully funded status within 11 years based on the current valuation. This compares favorably to the statutorily required funding policy which is a 90% funding target by 2040 (16 years). Director Coyle indicated that the City has always made the contribution recommended by the actuarial consultant but has worked with them to modify assumptions and funding policy when appropriate.

D. Exempt Transfer Stamps

Director Coyle presented responses to the follow-up items requested at the May 12, 2025 meeting. The Committee continued to discuss whether sump pump inspections should be required on an exempt transfer stamp, or if certain transactions should be excluded from the requirement. The Committee agrees that evaluating sump connections is important, but that it may not make sense for certain transactions such as a transfer of property to a trust without any sale. The Committee requested more data on the magnitude of illegal connections that could be identified by sump pump inspections required on exempt transactions, and a revised fee recommendation if the sump pump inspection requirement is not included for exempt transfer stamps.

E. Debt Policy

Director Coyle stated that staff is continuing to review policies as a best practice and suggesting updates where appropriate. The current debt policy was last reviewed by the Finance Committee in 2018. The revised policy adds in language from the City’s Municipal Code, which stipulates the limit on the issuance of general obligation bonds. The City does not have a limit established for low-interest government loans, such as the IEPA loans that help fund water, sewer, and wastewater projects. A statement was added that the City shall exercise due care in ensuring the ability to repay any new obligations with available revenue or rate structures. The final change serves to formalize requirements for draws and repayments on the City’s line of credit. Unlike traditional bonds and loans where proceeds are received upfront and repayment is fixed; line of credit draws occur as projects advance and repayments are made when TIF increment is available. The policy change allows the Finance Director to initiate draws within the limits of the budget, and for projects approved by City Council, with the approval of the City Manager and one of either the Mayor, Treasurer, or City Clerk. The Committee discussed the updated policy and Alderman Nudera moved to approve a report with modifications which was seconded by Alderman Hill, recommending that City Council adopt the updated Debt Management Policy. Roll Call vote: 4 ayes, 0 nays. Motion duly carried.

6. Other Business

Director Coyle shared information with the Committee on how City staff utilizes procurement cards, and the extensive controls in place to ensure all transactions are appropriate. The Committee asked what percentage of all purchases are made on procurement cards. Director Coyle explained that the amount is deliberately small and typically used only for purchases where being invoiced is not practical. On average the monthly bill ranges from $35K to $50K, compared to bi-monthly accounts payable of approximately $2M.

7. Adjournment

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

The meeting was adjourned at 9:05 p.m.

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