Administration and Finance Committee

PUBLIC NOTICE ADMINISTRATION & FINANCE COMMITTEE Thursday, February 19, 2026 - 4:30 PM Village Hall - 31 W. Quincy Street AGENDA 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Public Comment 5. Approval of Minutes a. Minutes of the January 8, 2026 regular meeting 6. Unfinished Business 7. New Business a. Risk Management Program b. Determining Upcoming Bond Issuance Size c. Appropriations Ordinance d. TIF Districts 8. Reports 9. Miscellaneous 10. Meeting Schedule 11. Adjourn Note: Any person who has a disability requiring a reasonable accommodation to participate in the meeting should contact the ADA Compliance Officer, 9:00 A.M. to 4:00 Page 1 of 62 P.M. Monday through Friday, Village of Westmont, Illinois, 60559; or telephone (630) 981-6210 voice, within a reasonable time before the meeting. Listen Everywhere, an assistive listening, mobile app, is now available to visitors attending Board and Commission Meetings held in the Village Hall Board Room. https://westmont.illinois.gov/581/ADA-Listen-Everywhere Page 2 of 62  ​Administration & Finance Committee​ ​Thursday, January 8, 2026​ ​Minutes​ ​I.​ ​CALL TO ORDER - 4:30 p.m.​ ​II.​ ​ROLL CALL -​​Trustees: Guzzo, Scale, Liddle, Parilli,​​and Plowman. Mayor Nero, Clerk​ ​Szymski. Staff: Manager Gunther, Director Mielcarski, Assistant Parker, Director Altic, Director​ ​Hennerfeind, Director Ries, Director Liljeberg, Director Brainerd, Director McIntyre, Chief Riley,​ ​and Deputy Chief Weibler.​ ​III.​ ​PLEDGE OF ALLEGIANCE​ ​IV.​ ​PUBLIC COMMENTS - None​ ​V.​ ​APPROVAL OF MINUTES -​​Approval of the minutes from​​the November 13, 2025​ ​Budget Workshop of the Administration & Finance Committee. Motion to approve by Trustee​ ​Guzzo, a second by Trustee Plowman.​ ​VI.​ ​UNFINISHED BUSINESS - None​ ​VII.​ ​NEW BUSINESS -​ ​a.​ ​Westmont Park District:​ ​Park District Digital​​Sign Funding Request​ ​Assistant Village Manager Parker provided an update on a Park District request for​ ​$50,000 to fund an electronic sign on 63rd Street, similar to those at the fire department​ ​and the library, to publicize events. The request stems from a verbal discussion in 2016​ ​to give the Park District $50,000 from the village's $600,000 road property sale to assist​ ​with wayfinding signs after the closure of Westmont Drive. While the verbal​ ​commitment was not an official binding agreement, the prior Village Manager had​ ​reminded the Park District of the potential $50,000 to assist with a digital sign instead​ ​of wayfinding signs in 2020.​ ​●​ ​Digital Sign Location and Usage:​ ​Executive Director​​Bob Fleck of the Park​ ​District confirmed the sign would be located on 63rd Street, at Bellerive Park,​ ​replacing an existing park monument sign near the water tower. Mr. Fleck stated​ ​the Park District intends to mirror the Village's digital sign policy and use the​ ​same brick for the pedestal as the other community signs at the South Fire​ ​Station and the library. The sign would be used for community-related​ ​messaging, such as youth sports registration and Fourth of July events, and the​ ​Park District would advertise village information upon request.​ ​●​ ​Advertising Policy and First Amendment Concerns​​The​​Village's sign policy​ ​currently limits advertising to government entities, excluding non-profits, to avoid​ Page 3 of 62  ​First Amendment issues and potential lawsuits, citing the example of the KKK.​ ​The Park District expressed interest in advertising for local charitable service​ ​clubs and sponsors like the Westmont Auto Mile for events such as the Fourth of​ ​July fireworks. Assistant Village Manager Parker explained that the Park District,​ ​as a separate governing entity, could choose to adjust its policy and accept the​ ​risk of liability for First Amendment questions, provided they do not advertise​ ​other businesses.​ ​●​ ​Funding Conditions and Liability​​The Village has the​​option to make the $50,000​ ​conditional on the Park District following the Village's policy via an​ ​Intergovernmental Agreement (IGA), but they are not required to do so. If the​ ​money is provided without an IGA, the Park District and their counsel would​ ​handle any liability issues related to their independent policy, which they are​ ​willing to take on, potentially allowing for extra service for local clubs without​ ​putting the Village at risk. Mr. Fleck noted that the sign cost is just under $80,000​ ​and the sign dimensions are similar to existing Village and Library signs. The​ ​committee was generally in favor of approving the funding as a purchase order​ ​on the next agenda without additional requirements​ ​b.​ ​Social Media Policy and Best Practices​​The Village​​has a social​ ​media policy, crafted about 10 years prior, to guide the removal of misinformation​ ​and safety-related content, but it does not remove straight criticism. Since the​ ​new Mayor's appointment in May, social media posting has increased to about​ ​four to five times a week, resulting in more public engagement. Best practices for​ ​officials and staff include directing the public to the Village website for accurate​ i​nformation and referring questions of uncertainty to staff, as inaccurate or​ ​sensational statements may be prioritized by the media.​ ​●​ ​Use of Personal Devices and Social Media Risks​​Discussions​​on freedom of​ ​speech and best practices emphasized the risk of using private social media for​ ​village-related discussions, as it may be considered village business and subject​ ​to Freedom of Information Act requests, potentially leading to the review of​ ​personal communication devices. Director McIntyre advised against using​ ​personal devices for village matters and cautioned that posted content cannot be​ ​taken back, as it can be screenshotted. The village permits public comments on​ i​ts social media but does not respond directly, opting to create separate news​ ​releases to address misinformation.​ ​c.​ ​Storm Water Code Revisions​ ​A presentation was​​given by Director​ ​Ries and Engineer Ulreich on proposed code revisions related to storm water​ ​management, including reverting to the DuPage County ordinance for Net New​ ​Impervious (NNI) thresholds. The current village ordinance is highly restrictive,​ ​requiring detention for an entire property if even one square foot of new​ i​mpervious area is added. The proposed change would adopt the county's​ Page 4 of 62  ​threshold of about 25,000 square feet of new impervious area before detention is​ ​required, aiming to support redevelopment.​ ​●​ ​Local Amendments to Storm Water Code​​Three local amendments​​were​ ​proposed to the DuPage County ordinance: redefining "substantial improvement"​ ​for buildings in flood or low depressional areas by adding a 10-year rolling reset​ ​period , increasing the Flood Protection Elevation factor of safety from one foot​ ​to two feet for properties near a river like St. Joseph Creek, while keeping one​ ​foot for low depressional areas, and codifying the current practice of regulating​ l​ow depressional areas similar to floodplains. The proposed changes would​ ​address concerns raised by business owners like the resident who noted that​ ​current retention requirements for a paved parking lot had previously cost over​ ​$250,000. The Director indicated further work is planned, including applying to be​ ​a complete waiver community, modeling all low depressional areas, and updating​ ​the fee-in-lieu to reflect current pricing.​ ​d.​ ​Personnel Code Amendments​​The Human Resources Director​ i​ntroduced annual personnel code updates to comply with state legislative​ ​changes and to make administrative adjustments. A complete overhaul of the​ ​manual is planned for 2026, but the current amendments are required in the code​ ​of ordinances. Two key policy changes include an administrative adjustment to​ ​allow for the payout of unused paid time off for separating part-time firefighters,​ ​which addresses operational challenges when they call off shifts to use their​ ​accrued time. The second change is a legislative one, amending the Illinois​ ​Police Training Act, which now requires the sharing of pre-employment​ i​nformation (e.g., physicals, psychological exams) in addition to personnel files​ ​and investigations when a current or former police officer is applying to another​ ​agency.​ ​e.​ ​TIF Status Update​​Assistant Manager Parker began​​the TIF (Tax​ ​Increment Financing) status update, noting that economic development is a​ ​significant focus for the village. Then Finance Director Allen was set to start the​ ​presentation on the two TIF funds.​ ​●​ ​TIFF Background and Purpose​​Director Altic introduced​​the discussion on Tax​ ​Increment Financing Districts (TIFFs), noting there is a South Tiff at 63rd Street​ ​and Cass and a Downtown Tiff, with 10 years left in the life of their TIFF. The​ ​primary purpose of TIFFs is to combat blight and break the cycle of market​ ​stagnation by offering incentives to developers, making building a more enticing​ i​nvestment in the community. This injection of incentive is designed to jumpstart​ ​the economy, attract more people, and improve the quality of local businesses,​ ​such as restaurants. Director Altic also noted that most neighboring​ ​communities, including Downers Grove, Clarendon Hills, and Lisle, actively utilize​ ​TIFFs, with Westmont starting later in 2013.​ Page 5 of 62 ​●​ ​TIFF Mechanism and Increment Definition​​The concept of "increment" is crucial​ ​to how TIFFs generate revenue for economic incentives. Director Altic explained​ ​that the increment is the increase in property value or assessed valuation above​ ​the base value, which was frozen when the TIFF was created (e.g., in 2013). The​ ​tax revenue generated from this increment flows into the TIFF fund. Using an​ ​example, Director Altic demonstrated that while other taxing bodies continue to​ ​receive the tax revenue based on the original base value, the TIFF captures the​ ​taxes from the value increase. The increment is most commonly generated​ ​through new construction, which is the "biggest bang" for increasing the​ ​Equalized Assessed Valuation (EAV), but also through smaller improvements and​ ​normal increases in property values over time.​ ​●​ ​Impact of TIFFs on School Districts​​Director Altic​​addressed the concern that​ ​schools might be losing money due to TIFFs, particularly concerning new​ ​construction projects like Mariano's or like One West Quincy, asserting that these​ ​projects would not have been built without TIF assistance, so schools are not​ l​osing anything they would have otherwise had. If a property built with TIF​ ​assistance adds students, the Village is required to pay the school district their​ ​average cost of attendance per student from the TIFF money (approximately​ ​$30,000 per student annually, as of 2011). However, the schools do lose potential​ ​property tax increases from small-scale new construction without TIFF​ ​assistance (like Neat's patio expansion) and from general rising property values,​ ​though the latter is mitigated by the property tax extension limitation law.​ ​●​ ​Intergovernmental Agreements (IGAs) with School Districts​​An​ ​Intergovernmental Agreement (IGA) was established with District 60 for the​ ​South TIF, which involved only the northern half of the area to secure the district's​ ​support. This decision resulted in limitations, preventing TIF assistance to areas​ ​south of 63rd Street, such as the US Bank property. Conversely, District 201​ ​negotiated a deal to receive 25% of all Central TIF revenue. Finance Director Altic​ ​noted that District 201 has received $900,000 more with the deal than they would​ ​have without the TIF, although the use of these funds is restricted to capital​ i​mprovements or improvements at Manning. The large 25% payment to District​ ​201 is hindering the ability to offer developers larger incentives, leading to less​ ​development and creating a "lose-lose proposition".​ ​●​ ​Financial Status of Both TIFFs​​Finance Director Altic​​provided a financial update,​ ​noting the South Tiff's EAV has increased from $18 million to $30 million over 13​ ​years, generating an annual profit of about $550,000 and having a positive cash​ ​flow of $830,000 after paying off its IOU to the village in 2024. The Central TIF​ ​EAV increased from $33 million to $53 million, generating an annual profit of​ ​about $530,000. The Central Tiff, however, currently has a $1.6 million IOU to the​ ​village, stemming from costs related to preparing one North Cass for​ ​development, and this IOU is projected to grow to $5 to $6 million next year due​ ​to budgeted projects like moving the S-curve and ComEd relocation. Despite this​ Page 6 of 62  l​iability, AVM Parker expressed confidence that the Central Tiff liability will be​ ​paid off by 2032 or 2033, well before its 2036 expiration​ ​●​ ​Future of TIFFs and Next Steps​​With only 10 years​​remaining, Director Altic​ ​emphasized that it is not enough time to secure sizable development projects, as​ ​the development timeline from initial conversation to tax value realization could​ ​take six years, leaving insufficient "runway". Options include allowing the TIF to​ ​expire with minimal future development, seeking a 12-year extension which​ ​requires approval from every taxing district and the state, or revamping the TIF​ ​boundaries to create a new 23-year life cycle. Revamping the TIF would take​ ​several months and likely necessitate renegotiation with the school districts.​ ​Next steps involve preliminary meetings with school districts, identifying future​ ​project sites, and conducting a TIF analysis with consultants to determine the​ ​best path forward, which may include removing some properties from the current​ ​TIF or declaring surplus funds to provide immediate cash relief to taxing bodies,​ l​ike the schools.​ ​f.​ ​Road Construction Method Update​​Following the TIF​​discussion,​ ​Public Works gave an abbreviated update on road construction methods,​ ​mentioning a meeting with the design engineer and an on-site review.The​ ​preliminary plan was deemed conservative, with findings indicating existing​ ​storm sewer could be reused, but also that existing ditches are substandard,​ ​difficult to fix, and more expensive than initially estimated. The conclusion was​ ​that the best approach for Westmont is "curb and gutter" construction for​ ​drainage, and value engineering, such as looking at the pavement cross-section,​ ​should keep the project within the current budget.​ ​VIII. REPORTS: None​ ​IX.​ ​MISCELLANEOUS:​ ​None​ ​X. ADJOURN:​ ​Motion to adjourn at 5:49 p.m by Trustee Scales, second by Trustee Plowman. All ayes.​ ​These minutes were created by Gemini AI based on notes from the meeting audio.​ Page 7 of 62  Village of Westmont Communications Department Getting the word out to our residents, businesses & guests! Page 8 of 62  Communications Department ● Environmental Improvement Committee ○ Monthly Meetings - Guest Speakers ○ Recycling Events & Public Outreach ● Sister City Program ○ Assist with student exchange program & annual cultural exchange programs ● Public Information Committee ○ Meeting 6 times a year in 2026 ● Vision & Vibe Fest ○ New event created & debuted in 3 months ● Special Assignments - State of the Village, Holly Days, Wicked West Fest, more Page 9 of 62 Communications Department ● Daily & weekly updates for most items ● Village Website ● News Releases ● Social Media Posts ● eNews ● News Magazine - 6 times a year Page 10 of 62 Communications Process ● Daily re-prioritization of information that needs to be created and published ● News release created and shared with key staff of approval ● Published on website & social media ● Considered for weekly eNews, digital bulletin boards, News Magazine, etc. Page 11 of 62  Communications PIO & Media Relations ● Work directly with Police & Fire regarding emergency situations ● Team approach confirming information & proofing draft news release ● Sign-off process prior to publishing ● Communicating with media outlets and specific media inquiries ● Speedway incident, BMW burglary attempt, recent bomb threat Page 12 of 62  Village of ● Facebook Accounts Westmont ○ Village Administration Social Media ○ Police Department Accounts ○ Public Works ○ Fire Department ● Nextdoor ● X (Twitter) Page 13 of 62 Social Media Policy & Protocols The purpose of the Village Social Media Posting Guidelines is to outline the terms and use, prohibited content, and disclaimers as they apply to all Village social media accounts that serve as a communication tool between the Village and the public. Before you post comments or content, please familiarize yourself with our policy. Page 14 of 62  Mayor Nero Communications Directive WE NEED TO GET THE WORD OUT! Page 15 of 62 GETTING THE WORD OUT! There’s Always Something Happening In Westmont! Page 16 of 62 Responding to the Public ● We want and need our Village messaging to be accurate and consistent ● We should direct the public and the media to official Village responses on our website - help people help themselves ● If needed, questions should be referred to staff ● If you don’t know the answer, it’s ok to say “Let me check on that and I can have someone get back to you” ● All questions from the media should be referred to Village staff, typically Administration/Communications ● Never say “no comment”, which infers that we are trying to hide information Page 17 of 62 Freedom of Speech vs. Best Practices ● Items that could be considered Village business are best communicated by the Village via official communication channels ● Personal communication by government staff & elected officials re: Village business may be subject to FOIA requests, which makes personal communication devices susceptible to FOIA Page 18 of 62 No Take-Backs Once it’s out there, it’s out there! It’s important to be thoughtful and accurate rather than quick and incorrect! Page 19 of 62 Assume? NEVER! There is never a reason to assume regarding information you do not know. Instead, ASK A QUESTION/ FIND THE ANSWER. Once you have the answer and you’re confident in the information, then share. Page 20 of 62 Feedback vs. Miscommunication ● Currently, Westmont allows public comments ● Mount Prospect - just turned off social media comments Page 21 of 62  Good Samaritan Food donated to Police & Fire Local business credited in comments Inaccurate information - actually donated by a resident Page 22 of 62  Bomb Threat ● Bomb threat information posted on Social Media ● Interesting Public comments Page 23 of 62 Lead People To The Answer ● Direct people to the Village website and other official communications ● Encourage people to sign up for NOTIFY ME ● Direct inquiries to staff, if needed Page 24 of 62 There’s Always Something Happening In Westmont! ● Continue to improve our social media content ● Post regularly ● Increase our number of followers ● Communicate information re: entire Village organization ● Create content that encourages positive engagement Page 25 of 62 Policy Updates January 8, 2026 Page 26 of 62  It’s that time of year….. ● Policy updates (2026 Goal to remove from Code) ○ Incorporate legislative changes ○ Make administrative adjustments for alignment, clarity and address departmental issues/concerns ● Administrative (7 Policies) ○ 62-105 - Part-time Paid Time Off (Firefighters) ● Legislative (6 Policies, 1 NEW) ○ NEW - Family Neonatal Intensive Care Act ○ 62-184 - Personnel Records Review Act ● Redlined Policy + Summary shared 12/23 - ?s Page 27 of 62 Administrative Policy - Biggest Impact ● Sec. 62-105 - Part-time Paid Time Off ○ Modified to show that we will pay accrued, unused PTO to part-time Firefighters when they leave the Village per Chief Riley’s request to help curb some of the short notice usage, especially during final shifts. Page 28 of 62  Legislative Policy - Biggest Impact ● Sec. 62-184 - Personnel Records Review ○ Incorporated requirements from the Illinois Police Training Act related to requesting and reviewing all performance related records before making a hiring decision for Police Officer candidates. Page 29 of 62  Legislative Policy - Biggest Impact (cont.) ● Sec. 62-184 - Personnel Records Review (cont.) ○ Now required to provide investigative and background information when other agencies request employment verification/file review, including: ● criminal/civil/administrative investigations ● duty-related physical exams ● psychological fitness for duty exams ● work performance records Page 30 of 62  Legislative Policy - Biggest Impact (cont.) ● Sec. 62-184 - Personnel Records Review (cont.) ○ Must provide this information to requesting agencies regarding our current/former employees within 14 days of receipt of the request. ● Cooperative effort between HR, PD and WBFPC to create a procedure and checklist to ensure we are in compliance. ○ WBPFC will also have to ensure we obtain and review all required information before making a hiring decision on any Police Officer candidate for Westmont PD. Page 31 of 62 Questions? Page 32 of 62 Administrative Policy Updates ● Sec. 62-2 - Definitions and Rules of Construction ● Sec. 62-91 - Pay Policy ● Sec. 62-92 - Hours of Work ● Sec. 62-105 - Part-time Paid Time Off ● Sec. 62-107 - Insurance Benefits Policy / Procedure ● Sec. 62-132 - Bereavement Leave ● Sec. 62-157 - Cause for Disciplinary Action Page 33 of 62 Administrative Policy Updates (cont.) ● Sec. 62-2 - Definitions and Rules of Construction ○ Added clarity to the definition of “Immediate Family” by adding punctuation. ● Sec. 62-91 - Pay Policy ○ Removed reference to the general wage adjustment (GWA). ● Sec. 62-92 - Hours of Work ○ Memorialized practice of not requiring exempt employees to punch out for lunch unless they anticipate needing more than a one hour break. Page 34 of 62 Administrative Policy Updates (cont.) ● Sec. 62-105 - Part-time Paid Time Off ○ Modified to show that we will pay accrued, unused PTO to part-time Firefighters when they leave the Village per Chief Riley’s request to help curb some of the short notice usage, especially during final shifts. Page 35 of 62 Administrative Policy Updates (cont.) ● Sec. 62-107 - Insurance Benefits Policy and Procedure ○ Updated eligibility and effective date language to match our current practice. ○ Removed reference to “paid on-call”. ○ Removed 7G language (last person left in 2023). ○ Removed reference to specific percentages the Village contributes for part-time insurance to provide some administrative flexibility. ○ Removed reference to minimum value health plan. ○ Cleaned up the Health Care Reform section. Page 36 of 62 Administrative Policy Updates (cont.) ● Sec. 62-132 - Bereavement Leave ○ Removed barriers to allow employees three days of bereavement leave to grieve the passing of an immediate family member, matching our current practice. ● Sec. 62-157 - Cause for Disciplinary Action ○ Added violation of the Village’s Core Values as a reason to impose disciplinary action. Page 37 of 62  Legislative Policy Updates (eff. 01/01/2026 unless otherwise indicated) ● Sec. 62-84 - Nursing Mothers in the Workplace Act ● Sec. 62-134 - Military Service ● Sec. 62-139 - VESSA ● Sec. 62-143 - Blood and Organ Donation Leave ● Sec. 62-145 - Family Neonatal Intensive Care Leave Act - NEW ● Sec. 62-184 - Personnel Records Review Page 38 of 62  Legislative Policy Updates (cont.) ● Sec. 62-84 - Nursing Mothers In the Workplace Act ○ Clarified that break time used for expressing breast milk must be paid at the employee’s regular rate of pay. ○ Removed language about frequency of breaks and the possibility of breaks being unpaid if more than 20 minutes every two hours is used. The updated law does not allow employers to require staff to use paid leave or to reduce their compensation for these breaks. Page 39 of 62  Legislative Policy Updates (cont.) ● Sec. 62-134 - Military Service (eff. 08/01/2025) ○ Included requirement that qualifying employees be granted up to 8 hours of paid leave per calendar month, not to exceed 40 hours of paid leave per calendar year, to participate in a funeral honors detail. Page 40 of 62  Legislative Policy Updates (cont.) ● Sec. 62-139 - Victims Economic Security and Safety Act (VESSA) ○ Added ability for employees to use their Village-owned equipment to document instances of domestic, sexual, gender-based or other crimes of violence without any adverse action being taken for this type of personal use. ● Sec. 62-143 - Blood and Organ Donation Leave ○ Clarified that part-time employees are also eligible for paid Blood and Organ Donation Leave and that their pay for this leave must be the daily average rate received during the previous two (2) months of employment. Page 41 of 62  Legislative Policy Updates (cont.) ● Sec. 62-145 - Family Neonatal Intensive Care Leave Act - NEW ○ Effective 06/01/2026 ○ New Illinois law requiring employers to provide up to 20 days of unpaid leave for employees who have a child in the neonatal intensive care unit. Page 42 of 62  Legislative Policy Updates (cont.) ● Sec. 62-184 - Personnel Records Review ○ Incorporated requirements from the Illinois Police Training Act related to requesting and reviewing all performance related records before making a hiring decision for Police Officer candidates. Page 43 of 62  Legislative Policy Updates (cont.) ● Sec. 62-184 - Personnel Records Review (cont.) ○ Now required to provide investigative and background information when other agencies request employment verification/file review, including: ● criminal/civil/administrative investigations ● duty-related physical exams ● psychological fitness for duty exams ● work performance records Page 44 of 62  Legislative Policy Updates (cont.) ● Sec. 62-184 - Personnel Records Review (cont.) ○ Must provide this information to requesting agencies regarding our current/former employees within 14 days of receipt of the request. ● Cooperative effort between HR, PD and WBFPC to create a procedure and checklist to ensure we are in compliance. ○ WBPFC will also have to ensure we obtain and review all required information before making a hiring decision on any Police Officer candidate for Westmont PD. Page 45 of 62 Questions? Page 46 of 62 Admin/Finance Committee 2026-01-08 Page 47 of 62 Park District Funding Request ● Requesting $50,000 to use for Electronic Sign ● In 2016 vacated Westmont Drive (Ogden to Pasquinelli) $600,000 ○ Initially concerns about access to Park District Fitness Club ○ Verbal understanding could give District $50,000 for wayfinding signs ● Wayfinding signs not done ● 2020 Park District looking at electronic sign w/ off site advertising ○ That was not allowed, but were reminded that we could provide $50,000 from the 2016 vacation ● Park District now ready to do digital sign on 63rd St Page 48 of 62 TIF Status Update ● TIF 101 ○ Why have TIFs ○ How are they funded ■ Method ○ Impact on Schools (and others) ● Current state of TIFs ● Future of our TIFs ● Downtown Incentive Program (DIP) - Time Permitting Page 49 of 62 Why TIFs ● Spur redevelopment & combat blight ● Developers look at market vs the investment ○ Vicious circle ● TIFs let us break the circle by reducing developer’s investment cost ○ Pay developer or pay debt ○ Positive circle Page 50 of 62 Examples From Our Neighbors ● Downers Grove (3) Washington & Curtis, Fairview & Ogden ● Clarendon Hills (3) Downtown, Ogden & 55th. St. ● Lisle (3) Downtown, Navistar and Corporate Drive Page 51 of 62 TIF Funding ● Tax Increment Financing ● Increment - Amount above the Base Property Value ● Example ○ $500,000 Base EAV ■ Tax rate is 6% of EAV so taxes are $30,000 grand total ● Village gets about $3,000; school gets $23,000 ○ New Building is $5 million more EAV total $5.5 million ■ New taxes are $330,000 ■ TIF gets $300,000 ■ All Governments keep their $30,000 Page 52 of 62 TIF Funding - What Makes Up Increment ● New Construction ○ Big buildings only built with TIF assistance ○ Smaller new construction without TIF assistance ● Rising property values Page 53 of 62 TIF Funding - Impact to Schools ● New Construction ○ Big buildings only built with TIF assistance ■ $30,000 per student generated ○ Smaller new construction without TIF assistance ● Rising property values ● Deals with Schools ○ SWBD - 60 - Cut TIF in half ○ CBD - 201 - Sharing 25% Page 54 of 62 TIF Funding - CUSD 201 - Impact ● $500,000 - From small new construction - 1st half of the TIF ● $1,400,000 - From 25% EAV ● $900,000 - What school got above what they would with the TIF ● Only for capital/improvement in the TIF - for Manning Page 55 of 62 TIF Funding - PTELL ● Only allows inflationary revenue (2.9% this year) ● Government still get this increase, just calculated on base ● If the TIF properties had risen along with everyone else, everyone would be paying a tiny bit less than they are with the TIF. ● On our 1st TIF, we estimated maximum impact ○ SWBD about $4.80/yr/yr for $300,000 home ■ Current is about $53/yr ● Revenue equivalent to cost same taxpayer $96/yr ● $43 - Net benefit to taxpayers Page 56 of 62 TIF Current Status - SWBD ● $30 million EAV (up from $18 Million) ● $800,000 - Annual TIF Increment ● $250,000 - Annual Developer Payments ($400k more in General) ● $550,000 - Net Increment ● $830,033 - Cash Available ● Finally able to finish paying back the Village’s $2 Million loan in 2024. Page 57 of 62 TIF Current Status - CBD ● $53 Million EAV (up from $33 million) ● $1.3 Million Annual TIF Increment ● $330,000 Annual Developer Payments ● $315,000 Annual School Payments ● $125,000 DIP Budget ● $530,000 Net Increment ● -$ 1,608,571 Cash Available (owes the Village ) ○ The Village is planning to loan another $4 Million this year ○ Projected to pay off Liability by end of 2032. Page 58 of 62 TIF Future ● On year 13 out of 23 ○ Hard to offset sizable investment in only 10 years ● Possible Future ○ End early - but some pledge revenues ○ Allow to expire in 10 years - but not much activity ○ Get extension for up to 12 years - State + all other entities ○ Remove portion & do a new TIF - Takes at least 6 months ■ May need to renegotiate with School Page 59 of 62 TIF Opportunities for School ● Huge benefit for schools long-term ● Both need more immediate relief ○ Rising cost of state mandate & lower state participation ○ District 60 provided cost cutting measures ● Consider combination of removing properties & declaring surplus ● Could tie it into support for implementing new TIFs ● Need to balance any current commitments Page 60 of 62 TIF Next Steps ● Preliminary Meeting with School Districts to talk general concepts ● Identify future project sites ● Identify plans with TIFS (remove & new TIF; surplus) ● Negotiate with schools ● Do TIF Analysis Page 61 of 62 Other TIF Questions? 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