Dupage Policy Journal

City of Elmhurst Finance Council Affairs & Administrative Services Committee met Oct. 14

Here are the minutes provided by the committee:

1. Call to Order

Chair Talluto called the meeting to order at 6:01 p.m.

2. Roll Call 

Committee Members Present: Talluto, Nudera, Hill (6:02), Virgil

Committee Members Absent:

Other Elected Officials Present: Levin (7:05), Curran (7:56)

City Staff and Others Present: Coyle, Bruns, Kravets, Palm, Ivancevic, Johnson, K (6:02)

3. Public Comment

None.

4. Receipt of Written Communication

None.

5. Business Before the Committee

A. Minutes of the September 22, 2025, meeting of the Finance, Council Affairs & Administrative Services Committee

A motion to approve the minutes of the September 22, 2025, FCA&AS Committee meeting was made by Alderman Virgil and seconded by Alderman Nudera. A voice vote was taken, and the minutes were approved unanimously.

B. Report – Health Insurance Renewal

Director Palm presented to the Committee a 12-month medical, dental, vision, and life insurance renewal package for 2026, approved by the members of the Government Insurance Network (GIN), of which the City is a founding member. The GIN insurance pool has performed well since it’s inception in 2018 with modest premium increases from 2019 – 2024. The new insurance plan year begins January 1, 2026, and incorporates premium increases ranging from 16% to 20% for the medical plans, and a 2.6% increase to the dental plans. There is no change to the premiums for vision and voluntary life insurance. The rising cost in medical premiums is primarily driven by recent claims history and prescription medication costs. The pool has seen the number of large claims, defined as claims in excess of $50,000, double since 2021. Anti-obesity drugs prescribed for weight loss and medical conditions such as diabetes and sleep apnea, are very expensive and were the top medications used in the GIN pool during 2024 and 2025. The City’s insurance broker, Marsh McLennan Agency (MMA) has indicated that other insurance pools in the Chicagoland area are experiencing the same or higher premiums increases for 2026. To address the rising premiums, the GIN pool explored numerous cost-containment measures after the preliminary renewal information contemplated a PPO renewal with a 30% increase. The GIN members identified several strategies to reduce the renewal premiums increases including limiting anti-obesity medications prescribed for weight loss only to the high-deductible PPO plan, where initial costs associated with the medication are paid upfront by the employee until the deductible is met. Another change is to offer biosimilar medications approved by the FDA. Due to the high claims in 2024 and 2025, the reserves held by GIN have been depleted. At the September meeting, GIN voted to require a supplemental contribution from each member to replenish reserves. The total additional contribution for all GIN members is $3 million while Elmhurst’s share is $600,000. The additional contribution must be completed by June 30, 2026, and the City has included this in the 2026 budget.

The Committee also reviewed the City’s contribution to employee Health Savings Accounts, which are currently half the cost of the employee deductible for the HSA plan. The IRS has mandated that starting January 1, 2026, minimum embedded deductible amounts will increase from $3,300 to $3,400 for single coverage and from $6,600 to $6,800 for family coverage. Raising the City’s contribution to half of the new deductible will maintain employee participation and parity with the collective bargaining agreements. The Committee agreed with the recommendation. A motion was made by Alderman Hill and seconded by Alderman Nudera to approve the report recommending the City approve the 2026 insurance premiums and reserve contribution as presented, and increase the City’s health savings account contribution to half of the new deductible. Roll Call vote: 4 ayes, 0 nays. Motion carried.

C. Report – Banking Services

Director Coyle reviewed with the Committee a proposal for banking services, including general checking/depository services, remote deposit, lockbox, coin deposit and the City’s line of credit. The City issued a request for proposals in July and received four responses to the proposal in late August. City staff reviewed the proposals and interviewed each of the four proposers, ultimately recommending the proposal of Elmhurst Bank, which is a Wintrust Bank and a branch of Hinsdale Bank & Trust. Elmhurst Bank was the most responsive proposer that offered the full level of services the City desired, has extensive experience in the municipal banking marketplace, and had a strong rate proposal. Staff also felt that Elmhurst bank had a unique position among the proposers. Elmhurst bank maintains a local bank customer service model while it has the financial resources of the Wintrust Financial Corporation, with $70 billion in assets. Staff felt this was important because while the customer service is localized, the bank has departments and resources available for cybersecurity, technology and fraud prevention as many larger banks do. A motion was made by Alderman Virgil and seconded by Alderman Nudera to approve the report with amendments, recommending City Council accept the proposal of Elmhurst Bank. Roll Call vote: 4 ayes, 0 nays. Motion carried.

D. Report – Line of Credit

Director Coyle presented a report to the Committee which recommends authorizing repayment of the City’s line of credit with Fifth Third Bank and draws on the new line of credit to be established with Elmhurst Bank/Wintrust. The City’s line of credit with Fifth Third Bank matures on October 31, 2025, while the City’s proposal for banking services recommends moving forward with Elmhurst Bank/Wintrust for the line of credit. Staff noted that the Elmhurst Bank/Wintrust line of credit would be available mid-November after the banking contracts were completed by City Council and new accounts were opened. As noted in the report on banking services, Elmhurst Bank proposed identical rate terms to the City’s existing line of credit. The City currently has an outstanding balance of $4.225 million, split amongst the City’s three Tax Increment Financing (TIF) Funds. The balances in each fund are $1.375, $0.7 and $2.15 million in TIF IV, V, and VI, respectively. Due to the time required to establish the new line of credit, the City intends to repay the TIF IV and TIF V balances with cash available in those funds. TIF VI does not have the ability to make repayments on its loan at this time, so general operating reserves will be used to bridge the gap between repayment of the old line and access to the new line. Once the new line of credit is established, the City will draw down the necessary funds for each TIF. A motion was made by Alderman Virgil and seconded by Alderman Hill to approve the report with amendments, recommending the repayment of the line or credit with Fifth Third Bank and authorization of the draws upon the line of credit with Elmhurst Bank/Wintrust when available. Roll Call vote: 4 ayes, 0 nays. Motion carried.

E. 2025 Property Tax Levy and Other Revenues

The Committee continued its review of key revenue sources for the 2026 operating budget. Director Coyle presented a memo and several detailed revenue schedules, outlining the following revenue changes proposed in the 2026 budget. Local Motor Fuel Tax is budgeted with a 0.015 cents per gallon rate increase, projected to provide an additional $215,000 of revenue. An estimated $100,000 in additional billing revenue is included to recapture costs associated with police, fire and public works overtime from services provided to special events occurring within the City. The 2026 budget proposes a tiered rate structure for wireless radio fire alarm services. Wireless rates were last reviewed in 2022 as DuComm increased rates to the City. The Committee recommended not passing along the fee increase, however, the Committee recommended reviewing fees again in 2025. As outlined in the plan to finance the new police station, a 1% increase to the hotel/motel tax is budgeted in the Capital Improvement Fund, with the additional funds dedicated to paying police station debt service.

The Committee also discussed the proposed 2025 property tax levy for funding the 2026 operating budget. Director Coyle explained that the fire and police pension levy line items reflect the recommended contribution determined in the annual actuarial valuation and represent a combined 7.5% increase from the 2024 levy for the police and fire pensions. The IMRF levy line is increasing due to an increase in the City’s required contribution rate for non-represented employees. Lastly, the fire protection line item is proposed to increase $1M to fund general fund operating budget. This line item is utilized as the funding source for general operating needs. The increase is primarily attributable to the projected insurance cost increase discussed as part of the 2026 insurance renewal. The Committee requested additional information be prepared by staff and brought back for discussion at a future Committee meeting.

F. Referral – Parcel Analysis

The Committee continued discussion of this referral, with Director Coyle providing additional information gathered from Urban3, a firm that specializes in this type of analysis. The Committee inquired whether staff identified any other firms capable of completing such an analysis which could provide an alternate quote. Staff have searched extensively but have not found other firms which provide this exact service. 

6. Other Business

None.

7. Adjournment

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

The meeting was adjourned at 8:06 p.m.

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