President and Board of Trustees

123 Madison Street Village of Oak Park Oak Park, Illinois 60302 www.oak-park.us Meeting Minutes President and Board of Trustees Monday, June 25, 2018 6:30 PM Village Hall I. Call to Order Village President Abu-Taleb called the Meeting to order at 6:33 P.M. II. Roll Call Present: 5- Village Trustee Taglia, Village President Abu-Taleb, Village Trustee Moroney, Village Trustee Boutet, and Village Trustee Andrews Absent: 2- Village Trustee Button, and Village Trustee Tucker III. Consideration of Motion to Adjourn to Executive Session to Discuss Pending Litigation It was moved by Village Trustee Andrews, seconded by Village Trustee Moroney, to enter into Executive Session pursuant to 5 ILCS 120/2(c)(11) - pending litigation. A voice vote was taken and the motion was approved. V. Reconvene to Special Meeting in Room 101 and Call to Order The Special Meeting reconvened at 7:04 P.M. VI. Roll Call Present: 5- Village Trustee Taglia, Village President Abu-Taleb, Village Trustee Moroney, Village Trustee Boutet, and Village Trustee Andrews Absent: 2- Village Trustee Button, and Village Trustee Tucker VII. Agenda Approval It was moved by Village Trustee Andrews, seconded by Village Trustee Boutet, to approve the Agenda. A voice vote was taken and the motion was approved. VIII. Non-Agenda Public Comment There was no Public Comment. IX. Regular Agenda A. MOT 18-337 A Motion to Receive the Fiscal Year 2017 Comprehensive Annual Financial Report (CAFR) and Supporting Documents. Deputy Village Manager Shelley stated that tonight's audit review is done annually. The Board will be asked to formally receive two documents in order for them to be submitted to the State by June 30. Village of Oak Park Page 1 Printed on 7/10/2018 President and Board of Trustees Meeting Minutes June 25, 2018 Dan Berg of Sikich LLC stated that the Comprehensive Annual Report is ready to be submitted to the National Government Finance Officer's Association to review for its Certificate of Achievement For Excellence in Financial Reporting. The Village has received that award for many years and should expect to receive it this year as well. The audit went well. He discussed journal entires, which were fewer that last year. Three were no disagreements with management. In addition, recommendations for improvement have been decreasing each year. The other document to be received is the Single Audit, which is issued when a client has more than $750,000 in Federal grants and expenditures. There were no findings. He congratulated staff for their work. Village Trustee Boutet asked why an adjusting journal entry would be needed. Mr. Berg explained it is done for unique transactions. For example, this year bond issuances needed adjustment to how they were recorded, as there has been a change in the way they are required record it. The Village filed it the old way but it was needed in the new way. His firm also assisted newer Village staff with some of the pension information. Village Trustee Andrews made positive comments regarding the audit. Village Trustee Taglia was pleased with the decreased liability within the Fire and Police Pension Funds. He expressed concern with water loss. Village Trustee Moroney asked why public safety expenses went up so much from 2014 to 2015. Chief Financial Officer Steve Drazner stated that the change was because 2015 was the first year that they were required to report the full net liability for pensions. Mr. Berg added that previously, pension liability was reported as what the actuary recommended to be contributed to the fund and what the Village did contribute. Village Trustee Moroney stated that public safety expenses have gone up by $9 million over six years and by $13 million with pensions. He is concerned that these expenses will continue to increase and result in higher tax levies. The Village has no tools available to deal with this and the Board needs to watch this closely. Village Trustee Boutet asked how these costs have gone up so high when the increases in the Collective Bargaining Agreements are under 5%. Mr. Drazner explained that it is a combination of step increases and cost of living increases. Increases can vary from 5% to 8% depending on the jump in the step. Village Trustee Boutet would like to see step increase information included with budget materials when discussing personnel in Executive Session. Mr. Drazner discussed the Village's unfunded pension liability. Fire was 37% funded and increased to 44%. Police was at 51% and increased to 59%. Total unfunded liability for police was $89 million down to $67 million, fire was at $80 million and is down to $66 million. The majority of the drop is due to using different assumptions with the new actuary as well as the Village's contribution last year of an additional $1.5 million into the fire pension. Village President Abu-Taleb commented that the decrease of 20% in liability is good news. He discussed how the pension liability affects the Village's credit rating. Mr. Drazner explained how he reports pension liability to Cook County. Village Trustee Boutet asked why Colt Westgate is separate from the Downtown TIF Fund. Mr. Berg stated that the Village chose to separate that from the Downtown TIF when the activity was high. Other funds from the Village have been fronting the project but in the end it will be made whole. Village of Oak Park Page 2 Printed on 7/10/2018 President and Board of Trustees Meeting Minutes June 25, 2018 Village President Abu-Taleb expressed concern regarding water loss. The billed to pump ratio has gone from 80% to 74%. It is his understanding that being at 90-92% is normal, anything less than that is waste. With the cost of water from Chicago at $7.5 million, the Village is paying approximately 15% more than they should. He asked what can be done to alleviate that. Deputy Village Manager Shelley stated that one of the things that the Board will see during the budget process is a leak detection survey. This used to be done every two years but will be done every year, in addition to general monitoring. He asked for a breakdown by month of how much the Village is losing. He suggesting that some of the Sustainability Fund be used to repair that issue. Village Trustee Moroney added that there is a lot of unmetered water use in the Village, such as Public Works watering and fire hydrants. Village President Abu-Taleb stated that he would like that accounted for as unbillable. There was discussion. It was moved by Village Trustee Andrews, seconded by Village Trustee Boutet, that this Motion be approved. The motion was approved. The roll call on the vote was as follows: AYES: 5- Village Trustee Taglia, Village President Abu-Taleb, Village Trustee Moroney, Village Trustee Boutet, and Village Trustee Andrews NAYS: 0 ABSENT: 2- Village Trustee Button, and Village Trustee Tucker B. MOT 18-341 A Motion to Receive the Fiscal Year 2017 Single Audit Report It was moved by Village Trustee Andrews, seconded by Village Trustee Moroney, that this Motion be approved. The motion was approved. The roll call on the vote was as follows: AYES: 5- Village Trustee Taglia, Village President Abu-Taleb, Village Trustee Moroney, Village Trustee Boutet, and Village Trustee Andrews NAYS: 0 ABSENT: 2- Village Trustee Button, and Village Trustee Tucker X. Adjourn It was moved by Village Trustee Andrews, seconded by Village Trustee Boutet, to adjourn. A voice vote was taken and the motion was approved. Meeting adjourned at 7:42 P.M., Monday, June 25, 2018. Respectfully Submitted, MaryAnn Schoenneman Deputy Village Clerk Village of Oak Park Page 3 Printed on 7/10/2018