August 21, 2018: Committee of the Whole Meeting

​President Bob Bielinski, Trustees Julie Wolf, Daniel Sullivan, Senta Plunkett, Kathy Dodd, Joel Kurzman, George Pearce.  Absent:  None.
 
Staff Present: Village Manager Timothy Frenzer, Asst. Village Manager Michael Braiman, Finance Director Melinda Molloy, Asst. Director of Administrative Services John Prejzner, Director of Engineering & Public Works Brigitte Berger.  Other staff members were on hand to answer questions as needed.
 
Discussion Topic:  2018 Mid-Year Financial Review and 2019 Budget/Capital Improvement Plan Review (Presented by Molloy, Frenzer, Braiman, Prejzner).  This meeting is historically the Board’s start of the budget process, though process started in May this year to plan for the projected sales tax revenue loss of $500,000 because of the impending closing of Carson’s at Edens Plaza. Presentation to Trustees included in Agenda and Meeting Packet: https://www.wilmette.com/download/agendas_and_minutes/committee_of_the_whole/packets/2018/08-18-18-COW-Packet-Financial-Review-and-CIP.pdf.  Page references below are to the presentation, starting after Agenda in the above-linked document.  Some highlights from the presentation and discussion:

• General Fund, Water Fund, and Sewer Fund discussed separately.
• For each Fund, discussion of FY2018 Revenue and Expenses, FY2019 Capital Improvement Plan, and, in case of General Fund, FY2019 Budget Projections and Tax Levy and, for Water and Sewer Funds,  FY2019 projected water and sewer rates.
• FY2018 Review shows July YTD and Year End Projections--so not final actuals.
• FY2019 Budget and Tax Levy Projections--Preliminary--Start of discussion.
• FY2018 General Fund projected to have more than $900,000 surplus (big portion due to non-recurring increase in permit revenue), now slated to be added to General Fund reserve. See pp. 4-8 for FY2018 General Fund Review.  Much discussion among trustees included whether should consider FY2018 General Fund surplus to fund more FY2019 projects or to alleviate FY2019 property tax levy. Request made to staff to consider what level of General Fund reserve is optimal.  Acknowledgment that generally want set minimum required reserve on low side so can be sure to meet it and not be dinged by rating agencies for not meeting it, but generally want actual reserve to be higher than minimum required.  Question is how high it should be, because acknowledgment that also don’t want reserve to be too high.
• FY2019 Budget Projections--$500,000 sales tax revenue loss projected because of Carson’s closing.  Trustee discussion noted that they must consider whether to treat that loss  as permanent or temporary, because that distinction has many planning implications.  See pp. 17-22 for FY 2019 preliminary budget projections,
• FY2019 property tax levy has 3 components:  operations, pensions and debt service.  Village can control the operations portion of the levy.  Preliminary operations portion of FY 2019 property tax levy now slated to increase $515,000 from FY 2018.  See pp. 23-24 for tax levy parameters.
• FY2019 Capital Improvement Projects potentially to be funded as budget allows are listed on p. 10 in order of priority, with acknowledgement that likely not to fund more than 4 of them unless more of FY2018 General Fund surplus used for capital projects (instead of going into General Fund reserve). Noted that some capital projects would end up with operating expense savings (e.g., Salt Brine machine would result in lower and less variable salt costs, in addition to being more eco-friendly). Trustee discussion included relative priority, and whether certain other things (e.g., electric car charging station) should be included.
• Road Program overview--see pp. 11-13:  Trustee discussion included whether should add more road projects (another potential use of FY2018 General Fund surplus).
• Public Safety Pensions--see pp. 21-22: Trustee discussion noted that Finance Committee has been discussing potential changes to amortization schedule and actuarial assumptions, likely to impact FY2020 budget.
• Village Fees (see pp. 25-26) largely unchanged, except for minor increase ($3/year) in solid waste fees.
• Water and Sewer Funds (see pp.27-35 and and 36-41, respectively) discussed, acknowledged that revenues largely weather driven.  Sewer (or other) fees not yet slated to increase because of stormwater improvement project approved in April; discussion whether better to have more gradual increase starting in FY 2019, rather than steep increase starting in FY2020.
• Trustees noted there are many levers in FY 2019 budget/capital improvement/levy process that can be adjusted, affecting other parts.  This the start of the process.
• Next steps, all open to public:  2018 Budget to be presented at October 9 Board meeting; Budget Workshop on October 30 for Trustees/staff to discuss Budget presented on the 9th; Additional Budget Workshops if necessary in early November; Budget Ordinance to be adopted at a November Board Meeting (not mentioned whether November 13 or 27); Tax Levy Ordinance to be adopted at December Board Meeting (not mentioned when exactly, only one on calendar now is December 11).

 
Public Comment:  None
 
Next Village Board of Trustees Regular Meeting:  August 28, 2018, 7:30 pm
 
Observer:  Mary Lawlor                      Meeting Length:  2 hours.