City Council Planning Sessions

Monday, August 24, 2020 1. Call to Order The Wheaton City Council Planning Session was called to order at 7:00 p.m. by Mayor Suess. The following were: Physically Present: Mayor Suess Councilman Barbier Councilwoman Bray-Parker Councilwoman Fitch Councilwoman Robbins Councilman Rutledge Councilman Zaruba City Staff Physically Present: Michael Dzugan, City Manager John Duguay, Assistant City Manager Joseph Tebrugge, Director of Engineering Sarang Lagvankar, Senior Project Engineer Susan Bishel, Public Information Officer Robert Lehnhardt, Director of Finance 2. Approval of July 13, 2020 Minutes The Council approved the July 13, 2020 City Council Planning Session minutes. 3. Public Comment Deb Cartwright, 1514 Center Avenue, spoke on behalf of a group of residents who are concerned with the plan for the installation of a new sidewalk on the south side of Center Avenue near Madison School. The group is recommending that the City reconsider the location, further consult with the administration at Madison School, and further consult with the residents on the north side of Center Avenue. 4. Quarterly Financial Report through June 30, 2020 Director of Finance Lehnhardt provided an overview of the Quarterly Financial Report which includes information about the City’s major operating funds through June 2020. The Quarterly Financial Report includes budgetary information about the general fund, water fund, sanitary sewer fund, storm sewer fund, parking fund, and the City’s cash and investments. He stated that he would review the structure and format of the report while giving a brief overview of revenues and expenditures. As of the end of the second quarter, the General Fund revenues are 6.3% (or $1.4M) lower than the prior year-to-date (YTD) totals; the City’s total operating expenditures of $19.6 million are 5.0% (or $2.2 million) below the budget benchmark and are 0.7% (or $144,539) higher than the prior YTD totals; Water Fund revenues are 1.8% (or $112,368) lower than prior YTD totals; Sanitary Sewer Fund revenues are 6.3% (or $72,024) higher than prior YTD totals; Storm Sewer Fund revenues are 2.3% (or $18,242) lower than prior YTD totals; Parking Fund revenues are 4.1% (or $16,714) lower than the prior YTD totals. AUGUST 24, 2020 CITY COUNCIL PLANNING SESSION MINUTES In response to a Council question, Director of Finance Lehnhardt stated that the City’s General Fund revenues exceed year-to-date operational expenditures by approximately $2 million. In response to a question from the Council, Director of Finance Lehnhardt stated that the parking fund revenues, including parking meter collections and fines, are still low due to minimal activity because of the COVID-19 pandemic. 5. COVID-19 Financial Projections Update City Manager Dzugan stated that Director of Finance Lehnhardt would be providing a third update on the COVID-19 financial projections. City Manager Dzugan stated that Director of Finance Lehnhardt is working with DuPage County on the forms of documentation needed to receive reimbursement through the CARE’s Act from DuPage County. Director of Finance Lehnhardt presented updated projections for revenue, expenditures, fund balances, and other revenue opportunities along with future actions the City can take. Current projections for the City’s total overall revenues are projected to be 4.2% (or $2.8 million) below the CY 2020 budget. The General Fund Revenue losses are projected to be 5.7% (or $2.5 million) under budget; Motor Fuel Tax Fund revenue losses are projected to be 3.4% (or $67,950) under budget; Parking Fund revenue losses are projected to be 21.5% (or $173,800) under budget. City staff has identified a total of approximately $4.9 million in total expenditure reductions for the CY 2020 Budget that include operating expenditure reductions in personal services and employee benefits ($759,325); reductions in charges and services ($640,302); interfund transfers for the Operating and Capital Funds ($1,348,373); postponement of capital projects ($1,659,346) and vehicle purchases ($453,966) to the CY 2021 Budget. Based on the latest revenue and expenditure estimates, the City is projected to have an overall total ending fund balances of $40.72 million for all major operating funds, with $12.46 million over the target reserve policy amounts. Staff has identified potential revenue funding opportunities that include the REBUILD Illinois capital improvement program and the DuPage County Local Government COVID-19 Reimbursement Program. Proposed projects have also been identified for grant funding including the Glencoe Street Concrete Panel Replacement, the Pedestrian Underpass Tunnel Repair, Infrastructure Improvements on Roosevelt Road, the President Pump Station Generator Replacement, and the Wheaton Downtown Streetscape Liberty Drive Site Improvements. In response to a question from the Council, Director of Finance Lehnhardt stated that the City usually receives reimbursement from the school district for the services provided by police officers assigned as school resource officers, but since officers will not be present at the schools during remote learning, the officers will remain on City payroll and will be reassigned to other duties. Director of Finance Lehnhardt identified in his memo to the Council recommended pending capital projects to complete and other projects that should be deferred to 2021. Assistant City Manager Duguay discussed the proposed installment of sidewalks on the south side of Center Avenue by Madison School with parking on the north side of the street. The proposed installment is to AUGUST 24, 2020 CITY COUNCIL PLANNING SESSION MINUTES coincide with the school’s current drop-off pattern and was based upon feedback from the school’s principal as well as observations from the City’s engineering consultant and staff. In response to questions from the Council, Senior Project Engineer Sarang Lagvankar stated the chosen installation of the sidewalk on the south side was proposed due to ADA compliance and potential drainage issues on the north side of Center Avenue. Changing the proposed installation of sidewalk from the south side to the north side of Center Avenue would be ineffective due to the current grading and slope of the area. A grading easement could be accomplished but it is unknown how far back an easement would need to go to address some of the more excessive sloped areas and there would be an additional cost to the project. In response to questions from the Council, the traffic flow around Madison School is regulated by school staff. The majority of Council members recommended that City staff proceed with the installation of the sidewalk on the south side of Center Avenue. In response to questions from the Council, the Capital Improvement project for the Parking Payment Technology study has been postponed due to the lack of data that can be gathered from traffic as a result of the COVID-19 pandemic. In response to questions from the Council, the projected general fund balance for 2020 does not include any potential CAREs Act funding. 6. Calendar Year 2021 Budget Framework City Manager Dzugan presented the forecast models for the 2021 revenues and expenditures projections. He stated the reasoning for the current projected deficits included the lack of revenue because of the COVID-19 pandemic and the annual growth of City expenditures. City Manager Dzugan proposed two options for the Council to consider to make up for the current projected deficit. Option one would be a one-year plan that would not allocate monies to the renewal funds and extending the useful life of equipment such as vehicles and technology, increasing ambulance fees, and bringing more contracted services in-house. Option two would be a multiple year approach that would include service reductions and increased service charges based on Council recommendations. City Manager Dzugan requested the Council’s recommendation for the development of the CY 2021 Budget Framework, with the City’s staff recommendation being Option 1. Council members provided feedback and requested that the City proceed with the development of the CY 2021 Budget utilizing Option 1 as the budget framework. 7. City Council/City Staff Comments Mayor Suess thanked City staff for their work preparing their presentations for the Council and for their direction regarding the City’s finances. 8. Adjournment The meeting was adjourned at 9:00 p.m. AUGUST 24, 2020 CITY COUNCIL PLANNING SESSION MINUTES Respectfully submitted, Daniel J. Peck