Dupage Policy Journal

City of Elmhurst Finance Council Affairs & Administrative Services Committee met Aug. 11

Here are the minutes provided by the committee:

1. Call to Order

Chair Talluto called the meeting to order at 7:30 p.m.

2. Roll Call 

Committee Members Present: Talluto, Nudera, Hill, Virgil

Committee Members Absent:

Other Elected Officials Present: Curran

City Staff and Others Present: Coyle, Bruns, Kravets

3. Public Comment

None.

4. Receipt of Written Communication

None.

5. Business Before the Committee

A. Minutes of the July 14, 2025, meeting of the Finance, Council Affairs & Administrative Services Committee

A motion to approve the minutes of the July 14, 2025, FCA&AS Committee meeting was made by Alderman Nudera and seconded by Alderman Virgil. A voice vote was taken, and the minutes were approved unanimously.

B. Minutes of the July 28, 2025, meeting of the Finance, Council Affairs & Administrative Services Committee

A motion to approve the minutes of the July 28, 2025, FCA&AS Committee meeting was made by Alderman Hill and seconded by Alderman Nudera. A voice vote was taken, and the minutes were approved unanimously.

C. Fleet Funding

Director Coyle presented alternate Fleet internal service fund scenarios as requested at the previous meeting. The forecasts also incorporate the most current vehicle replacement projections based on the proposed 2026 Capital Expenditure Budget in progress. One model showed no excess contribution and illustrated that the fund would not be able to maintain a positive fund balance throughout the 10 year forecast but would achieve the desired smoothing of capital costs associated with vehicle purchases. The alternative forecast provided, which includes a $500K annual excess contribution, would be able to maintain a positive fund balance while providing a consistent and predictable impact on the annual budget. The Committee discussed the forecasts and asked what the minimum excess contribution would need to be to maintain a positive fund balance. The Committee also requested that staff evaluate whether the vehicle replacement schedule could be altered to achieve the same effect as the excess contribution, and asked that investment income, though marginal, be incorporated into the forecasts. The Committee firmly supports the concept of an internal service fund model and the advantages it provides but inquired whether there are any disadvantages to the approach. Director Coyle explained that the fund would not be restricted and therefore the City could decide to repurpose the funds in the future for another use. It will require financial discipline to maintain the necessary contributions into the fund, even in down years such as during a recession. Staff will prepare the additional information requested for discussion at a future meeting.

D. Mid-year Financial Report

Director Coyle provided a summary of mid-year performance to the Committee. The cumulative fund balance of the General Fund remains consistent, as illustrated within a 5 year trend analysis. General Fund revenues are in line with expectations and on target with the 2025 budget. It was noted that 2025 performance of Sale Tax revenue, while positive, is impacted by a change in state law that took effect January 1, 2025. Public Act 103-0983 changed the way tax was applied to certain retail sales, making them subject to Retailers’ Occupation Tax (ROT) rather than Use Tax (UT). This has increased Sales Tax revenue, but the City has also realized an equivalent decrease to Use Tax, neutralizing the impact. However, the change has also driven an increase in the City’s Home Rule Sales Tax revenue, creating a positive impact with no negative offset. General Fund expenditures are at 36% of the 2025 budget, in line with the June 30, 2024 expenditures which were also at 36% of budget. The Stormwater Fund is performing as expected. The Municipal Utility Fund is on budget, but it was noted that interest income is higher than projected due to higher than anticipated positive cash flow. Charges for services in the Parking Fund increased $135K over the prior year, due to rate increases implemented and the continued return of commuters. An overview of the Tax Increment Financing (TIF) district funds included the current cash position and line of credit debt outstanding for each fund, as well as the planned projects.

E. Budget – Capital Revenues

Director Coyle presented the performance and expectations of several key revenues in preparation for the 2026 Capital Expenditure Budget to be presented to City Council. Current 2025 projections indicate the City will receive $13.67 million in Home Rule Sales taxes, $859,800 over budget overall. Home Rule Sales tax revenue budgeted for 2026 is being projected at a 2.4% increase from the 2025 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 2025 estimated total and the 2026 budgeted per capita projection provided by the Illinois Municipal League (IML). This approach is consistent with projections in prior budget years, and results in budgeted 2026 revenue of $8.3M. The City is also following the IML forecast for 2026 Motor Fuel Tax projections. The 2026 revenue is budgeted to increase 1.2%, or $24,200, over the 2025 budget. These revenues are bring negatively impacted by an expected decrease in consumption. It was noted that the current increases in MFT revenue are not keeping pace with construction cost increases.

6. Other Business

The Committee discussed the exempt transfer stamp report which was approved at the July 28th meeting. Alderman Virgil wanted to further discuss the property transactions currently exempted from the transfer stamp requirement by state statute, and which of those the City is proposing to now require an exempt transfer stamp for. The report will be brought back to Committee for discussion instead of being forwarded to City Council.  Staff will bring back additional clarification and proposed language changes to the Municipal Code for further discussion by the Committee.

Attendance for the August 25th Committee meeting was discussed, as well as topics which may be included on the agenda.

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 9:04 p.m.

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