Administration and Finance Committee

​Administration & Finance Committee​ ​Thursday, August 21, 2025​ ​Minutes*​ ​I.​ ​CALL TO ORDER​ ​II.​ ​ROLL CALL -​​Trustees: Guzzo, Liddle, Nero, and Barker.​​Mayor Gunter & Clerk​ ​Szymski. Staff: Manager May, Chief Gunther, Director Mielcarski, Assistant Parker, Director​ ​Altic, Director Hennerfeind, Director Ries, Deputy Chief Frank, Deputy Chief Fitzgerald, Director​ ​Brainerd, Director McIntyre, and​ ​III.​ ​PLEDGE OF ALLEGIANCE​ ​IV.​ ​PUBLIC COMMENTS - None​ ​V.​ ​MINUTES​ ​A.​ ​The minutes from the special meeting on March 27th, 2025, and regular​ ​meetings on April 3rd and July 10th, 2025, were approved with a motion by​ ​Trustee Barker and a second by Trustee Scales​ ​VI.​ ​UNFINISHED BUSINESS - None​ ​VII.​ ​NEW BUSINESS​ ​●​ ​Credit Card Fees for Permits​​Finance director Alan​​Altic provided an update on credit​ ​card fees for permits, a topic continued from a previous meeting. The goal is to assess a​ ​credit card fee for permits, especially as the Village moves to an all-online permit​ ​application system, which could involve multi-million dollar projects and significant fees.​ ​○​ ​Negotiations with Tyler Payments​​The village's credit​​card processor, Tyler​ ​Payments, initially proposed a 3.65% fee for residents, which has been​ ​negotiated down to 3.25%. Alan Altic indicated that Tyler Payments is unwilling to​ ​reduce the fee further, noting that nearby Hensdale charges the same rate for all​  ​transactions, including water billing, which is a major source of credit card​ ​transactions.​ ​○​ ​Exploring Alternative Fee Structures​​Alan Altic inquired​​about the board's​ ​appetite for a different model, such as charging residents 3% and the village​ ​absorbing a 5-cent transaction fee to cover the remaining 0.25% spread.​ ​Currently, the village caps credit card payments for permits at $5,000, requiring​ ​checks for higher amounts, but this will not be feasible with an all-online system.​ ​○​ ​Payment Options for Residents​​Residents will still​​have the option to pay with​ ​cash or check in person, and a free online option for e-checks exists, with the​ ​village absorbing a $1.95 transaction fee for e-checks regardless of the permit​ ​fee amount. The primary question is whether the 3.25% credit card fee for​ ​permits is acceptable, given that it aligns with other municipalities, or if the village​ ​should push for a 3% fee by absorbing more costs, similar to what customers​ ​might see at a restaurant.​ ​○​ ​Board's Direction on Credit Card Fees​​The board approved​​the 3.25% credit​ ​card fee for permits, which Alan Altic will communicate to Tyler Payments to​ ​proceed. This decision aligns with the growing trend of retailers and restaurants​ ​passing on processing fees to customers.​ ​●​ ​Hotel Motel Tax Revenue Overview​​The village has a​​5% hotel motel tax rate, the​ ​maximum allowed by statute for a non-home rule community, which must be used to​ ​support tourism and promote overnight stays. In 2024, the village collected $968,000​ ​from this tax, with projections to reach $1 million in 2025. The fund currently has a​ ​surplus of almost $3 million, indicating healthy financial standing .​ ​○​ ​Investment in Tourism and Economic Development​​Moving​​to invest heavily​ i​n tourism and economic development, particularly with a new chamber president​ ​and economic development consultant, to generate more sales tax revenue.​ ​Ideas included marketing events like the October Natiatorum event to attract​ ​more visitors to restaurants, funding the chamber for similar initiatives, and​ ​promoting other local attractions like pickleball and SkyZone trampoline park as​ ​destinations.​ ​○​ ​Current Use of Hotel Motel Tax Funds​​Over the last​​three years, hotel motel​ ​tax funds have been used for various purposes, including $313,000 for​ ​maintenance and upkeep of Westmont Center, $346,000 for holiday lights and​ ​decorations, and $472,000 for fire baskets and watering in downtown.​ ​Additionally, 50% of the communications staff's wages and a portion of PD​ ​staffing costs for event patrols are allocated to this tax.​ ​○​ ​Grant Programs and Partnerships​​The village utilizes​​hotel motel tax funds for​ ​grant programs to support events and organizations, including the Rotary Club,​ ​Reliance Club Foundation for Spring Fling, and the Westmont Parks District for​  ​events like holidays and concerts. The village also sponsors the DuPage​ ​Convention and Visitors Bureau ($140,000 over the last few years) and the​ ​Westmont Chamber, which helps with tourism and economic development.​ ​○​ ​Maximizing Hotel Motel Tax Utilization​​Alan Altic​​proposed next steps for​ ​utilizing the nearly $3 million in hotel motel tax money, including maximizing the​ ​25% allocation for economic development and infrastructure, which is​ ​permissible until December 2026. Other recommendations include moving​ ​$15,000 annually from the general fund to the hotel motel tax for tourism and​ ​economic development payments, and allocating salaries of facilities​ ​maintenance, public works, and fire department personnel involved in events to​ ​this fund.​ ​○​ ​Future Economic Development Initiatives​​The board​​expressed strong support​ ​for using the hotel motel tax funds to promote economic development, attract​ ​more visitors, and support local businesses and events. The new Vision and Vibe​ ​event and the recently hired economic development consultant will also be​ ​funded through these tax dollars. Discussions included exploring the potential for​ i​ncreased hotel occupancy and how to make local hotels more attractive to​ ​guests.​ ​○​ ​Short-Term Rentals and Tax Implications​​Short-term​​rentals like Airbnbs are​ ​not currently subject to the 5% hotel motel tax in Westmont. While it's a gray​ ​area, the village has historically deemed the potential revenue from taxing​ ​Airbnbs too small to justify the enforcement complexities.​ ​●​ ​FDBC Program Update: Merit Program Overview​​HR Director​​Renee Brainard and​ ​Assistant Village Manager Parker provided an update on the merit program for​ ​non-union employees, which went into effect on January 1st of the current year, with the​ ​first merit bonus issued on August 1st. The program emphasizes growth, development,​ ​and feedback through ongoing conversations, self-reflection, and continuum ratings​ ​based on work results and core values.​ ​○​ ​Spot Bonus Program​​The program includes a spot bonus​​system where​ ​non-union employees can award colleagues $60 bonuses for positive impact,​ ​and departments have a pool of money for individual ($200) or group ($100 per​ ​person) awards. Spencer noted that 143 employee-to-employee bonuses have​ ​been given, and significant departmental bonuses were awarded following recent​ ​storms.​ ​○​ ​Merit Bonus Distribution and Program Performance​​The​​merit bonuses for​ ​August 1st were distributed based on a color continuum rating system (red to​ ​blue, with purple for new employees), which aims to be less judgmental than a​ ​number scale. The actual distribution of employees across the performance​ ​categories closely matched initial estimates, with the majority falling into the​ ​"green" (good, solid) or "teal" (above and beyond) categories.​  ​○​ ​Financial Sustainability and Hybrid Model​​The board had allocated $300,000​ ​for merit bonuses, in addition to a 3% general wage adjustment. To ensure​ ​financial sustainability, Spencer explained that annual raises based solely on​ ​performance would compound at an unsustainable rate, suggesting a hybrid​ ​model that balances annual bonuses with incremental adjustments to base​ ​salaries.​ ​○​ ​Proposed Hybrid Compensation Model for 2026​​For 2026,​​a hybrid model is​ ​proposed where $35,000 of the annual bonus money would be integrated into​ ​raises, allowing for differentiation in wage adjustments based on performance,​ ​ranging from 2.5% for lower performers to nearly 4% for top performers, while​ ​keeping the overall compounding rate at a maximum of 3.25%. This approach​ ​aims to provide better long-term salary growth for higher-performing employees​ ​while ensuring all employees receive adjustments that generally keep pace with​ i​nflation.​ ​○​ ​Employee Performance and Compensation​​Meetings Control​​discussed​ ​employee performance and compensation, noting that while revenue levels are​ ​not the primary metric, a subjective system based on supervisor expectations is​ i​n place, with some departments able to create more objective measures.​ ​Meetings Control clarified that employees in the "red" would not receive annual​ ​bonuses and would only get the minimum cost of living adjustment. They also​ ​emphasized that communication between supervisors, employees, and HR has​ i​mproved, fostering opportunities for advancement and training, which is a key​ ​part of the current system.​ ​VIII.​ ​REPORTS​ ​●​ ​Community Development Comprehensive Plan​​Community​​development director Joe​ ​Hennrefeind presented an update on the community development comprehensive plan​ ​downtown plan review. They explained that the new zoning ordinance introduced new​ ​districts, and while the current comprehensive plan from 2013 is outdated, some​ ​rezonings for public and institutional (PI) properties can proceed without a new​ ​comprehensive plan. Joe Hennerfeind feind is seeking feedback on the extent of​ ​downtown rezonings, particularly concerning the boundaries of the B1A (downtown core)​ ​and downtown edge districts, and whether to proceed with rezonings to the north and​ ​south of the downtown core before the comprehensive plan is finalized.​ ​●​ ​Downtown Rezoning Strategies​​The discussion continued​​regarding the extent of​ ​downtown rezoning. Joe Hennerfeind feind indicated that staff is comfortable with a​ ​phased approach, initially rezoning the first block to the north (to Irving) and the first​ ​block to the south (to Richmond), including the "restaurant row" area, as B1A (downtown​ ​core). Hennerfeind also proposed rezoning R5 (most intensive residential) areas to R7​ ​(downtown residential), allowing for greater density, before the comprehensive plan is​ ​complete. The B1A district aims to promote walkability and allows for taller, five-story​  ​buildings, while the downtown edge (similar to B1) permits three-story buildings and​ ​some breaks for parking lots.​ ​●​ ​Economic Development Considerations and Community Impact​​Joe Hennerfeind​ ​fine acknowledged that from an economic development perspective, taking a "huge bite"​ ​by rezoning larger areas to higher density would be ideal. However, they emphasized​ ​the importance of balancing long-term economic development with the current​ ​businesses, recognizing that significant changes could make existing businesses​ ​non-conforming or upset homeowners with new five-story buildings behind their homes.​ ​Joe Hennerfeind fine committed to providing an analysis of the non-conformities and the​ ​pros and cons of "the big bite" versus "the little bite" for the Community Development​ ​Committee's (CDC) review. They also mentioned plans to integrate the public works​ ​downtown plan with the comprehensive plan and to meet with the downtown Westmont​ ​business community.​ ​Summary​ ​The meeting was called to order at 4:30 pm, on April 21st, 2025, where the minutes from​ ​previous meetings were approved. Finance Director Alan Altic provided an update on credit card​ ​fees for permits, with the board approving a 3.25% fee after negotiations with Tyler Payments.​ ​Alan Altic also discussed the utilization of the hotel motel tax revenue, proposing strategies to​ ​maximize its use for tourism and economic development, which Mayor Nero and the Board​ ​strongly supported. HR Director Renee Brainard and Assistant Village Manager Parker updated​ ​the board on the merit program and proposed a hybrid compensation model for 2026.​ ​Community Development Director Joe Hennerfeind feind presented an update on the​ ​Community Development Comprehensive Plan and discussed Downtown rezoning strategies.​ ​IX.​ ​MISCELLANEOUS - none​ ​X.​ ​ADJOURN​ ​Motion by Nero and second by Barker​ ​(next meeting is scheduled for October 2, 2025)​ ​*Please note that these minutes were created by Gemini and double checked.​