City Council Planning Sessions

MEMORANDUM TO: Record FROM: Susan Bishel, Public Relations Coordinator SUBJECT: June 25, 2018 City Council Planning Session Minutes DATE: June 28, 2018 CC: Mayor and City Council, City Manager, City Clerk, Department Heads The Planning Session took place in the Council Chambers, Wheaton City Hall, 303 W. Wesley St., Wheaton, Illinois. Those attending the Planning Session included: Councilman Barbier, Councilwoman Fitch, Mayor Gresk, Councilman Prendiville, Councilman Rutledge, Councilman Scalzo and Councilman Suess. Also in attendance were City Manager Dzugan, Assistant City Manager Duguay, and Director of Planning & Economic Development Kozik. The session began at 7:00 p.m. and concluded at 7:48 p.m. The following items were discussed: I. Call to Order The Wheaton City Council Planning Session was called to order at 7:00 p.m. by Mayor Gresk. II. Public Comment Paula Barrington spoke on behalf of the Downtown Wheaton Association, 108 E Wesley Street, stating the DWA is advocating for the expansion of the boundaries for the proposed Special Service Area to replace SSA 7 to include Wheaton Center, Wheaton 121 and Courthouse Square Apartments. She stated the DWA believes these three commercial properties directly benefit from the marketing and events provided by the DWA. The DWA also would like to see the tax rate of 0.45 maintained. Kyle Brady of Naperville Running Co., 102 W Front Street, stated as a new merchant in downtown Wheaton, his business has greatly benefitted from the support of the DWA through its events and marketing. He urged the City Council to fully fund the DWA, as it is very helpful for local businesses. Jim Mathieson, past president of the Downtown Wheaton Association, stated the City has made a significant investment in the downtown, and the DWA is doing more with the funding it receives than it ever has. He would like to include the rental properties that directly benefit from the DWA so that the rate can be spread among more entities that benefit from the DWA. Diane Moore, owner of Moore Toys & Gadgets, 107 E Front Street, spoke in support of including the three rental properties in the proposed SSA. - Donna Hesik, owner of Suzette’s Creperie and 207, 209 and 211 W Front Street, stated she has seen positive growth in the downtown in the 18 years since she opened her business here, especially with the addition of many businesses and bringing more housing to the downtown. She spoke in favor of including the three rental properties, as they also benefit from the DWA, and urged the City Council to continue to support the downtown by expanding the SSA’s boundaries. III. Approval of June 11, 2018 Planning Session Minutes Councilman Rutledge stated he believed the minutes should be changed to reflect that the previous tax rate was $0.95, not $0.90, on the bottom of page 2. IV. Special Service Area 7 Replacement Mayor Gresk recused himself from the discussion on the Special Service Area 7 Replacement. Councilman Suess became Mayor Pro Tem in Mayor Gresk’s absence. City Manager Dzugan stated following the several discussions the City Council has had regarding the proposed replacement for Special Service Area 7, City staff is seeking direction on the tax rate, initial levy, boundary and purpose the Council would like to see on an ordinance for their formal consideration on June 18. He stated the purpose City staff provided for the Council’s review has been slightly revised to allow the City to fund the DWA and additional services to the downtown through SSA revenue, if the Council so chooses. City Manager Dzugan presented a table of different tax rate scenarios, including the current tax rate and resulting revenue generated, and the amount that would need to be raised to fully fund the DWA’s expenses as they are today. The table also included how including the three rental properties in the SSA boundaries would affect the revenue generated. City Manager Dzugan also provided information from the City Attorney regarding the City Council’s ability to change the ordinance after holding the public hearing. The City Attorney stated the rate could be lowered after the public hearing, but it cannot be increased. Likewise, the City Council could decide to include less properties in the boundary than in the originally presented proposed ordinance, but it could not expand the boundary after the public hearing, and the City could levy a lesser amount than originally stated, but it could not increase the levy. Councilman Scalzo spoke in favor of including the rental properties and using a tax rate of $0.45. He encouraged the rest of the City Council to consider doing so as well, and then seeing what kind of feedback they receive at the public hearing. 6-25-18 Planning Session 2 - In response to a Council question, City Manager Dzugan stated the proposed SSA would be sent to each individual property owner in the proposed boundaries before the public hearing. Councilman Rutledge stated apartments are considered residential properties, not commercial, and he estimates that the rental property owners would pass along the tax rate increase of between $30-$55 per month to each tenant. He stated he would like to keep the existing SSA boundaries. Councilman Prendiville and Councilwoman Fitch stated they would prefer to not raise the tax rate and to keep the existing boundaries. Mayor Pro Tem Suess stated he supports keeping the rate at $0.45 but would like to expand the boundaries to include the three rental properties. He would like for the DWA to be fully funded without relying on additional assistance from the City’s General Fund each year. He would also like to see the SSA contribute toward funding the upkeep of the parking garage. Councilman Prendiville stated for the sake of moving the proposed SSA forward, he would be agreeable to including the rental properties and lowering the rate to mitigate the effect on tenants, but he still generally opposes including the rental properties. In response to Council questions, City Manager Dzugan stated the Council would not be required to levy the full amount that is in the ordinance, so if the Council decided that it does not believe the full amount levied is necessary, it could levy a lower amount. However, the City could not levy more than is set in the ordinance. Councilman Barbier stated he would like to set a rate higher than $0.45 so that if, after receiving input through the public hearing, the City Council decided not to add the three rental properties to the boundaries, the City would still be able to fully fund the DWA. He suggested the City set the rate of $0.52 to ensure the DWA is fully funded. The Council expressed agreement to expand the boundaries for the purpose of moving the proposed ordinance forward, with the possibility of removing the rental properties from the boundaries after the public hearing, and setting a rate of $0.52. In response to Council questions, City Manager Dzugan stated the City will be creating a new agreement with the DWA along with the new SSA. 6-25-18 Planning Session 3 - Mayor Gresk returned to the meeting at 7:47 p.m. V. City Council/Staff Comments Councilman Prendiville stated he had recently attended his daughter’s college graduation in Oregon, and driving across the country gave him an appreciation for the great country in which we live. VII. Adjournment The meeting was adjourned at 7:48 p.m. 6-25-18 Planning Session 4