City Council Planning Sessions

Monday, October 9, 2023 I. 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 Councilman Brown Councilman Clousing Councilwoman Robbins Councilman Weller Absent: None City Staff Present: Michael G. Dzugan, City Manager John M. Duguay, Assistant City Manager Robert Lehnhardt, Director of Finance Halie Cardinal, Public Relations Coordinator II. Public Comment John Patterson, 1849 Cherry St., thanked the workers within his neighborhood for their efforts related to the New Sidewalk Program. He also thanked Deputy Chief Ryan Conway for his responsiveness and effective communication in relation to residents’ concerns of pedestrian safety on Cherry Street. III. Approval of Planning Session Minutes – September 11, 2023 and September 25, 2023 The City Council approved the September 11, 2023 and September 25, 2023 City Council Planning Session Minutes. IV. 2023 General Purpose and Debt Property Tax Levy – Estimate City Manager Dzugan highlighted key points for the Council to consider as it discusses the amount to levy for several taxes. For the General Purpose Debt Levy, staff proposed that with the retiring of the library building debt, the City move the amount of the previous debt payment – approximately $1.1 million – to the General Purpose portion of the levy. The total levy would not increase, however, this change would require the City to hold a Truth in Taxation hearing due to move of the funds to the General Purpose portion of the levy. City staff also recommended increasing the total amount of the General Purpose levy by at least $200,000 to cover costs recommended by the library’s compensation study and changes to the building renewal lifespan calculations. City Manager Dzugan stated for Special Service Area 8, staff recommended increasing the levy by $150,000 for municipal services. This would be transferred to the General Fund and then the Parking Fund to pay for downtown parking costs. Monday, October 9, 2023 CITY COUNCIL PLANNING SESSION MINUTES Director of Finance Lehnhardt reviewed the General Purpose Levy, which is comprised of general corporate, police and fire pensions, and the library. The Debt Service Levy covers a General Obligation Bond and Pension Obligation Bond. The City is required to file the adopted levies by the last Tuesday in December. The adopted levy can be abated until March 2024. In response to a Council question, Director of Finance Lehnhardt confirmed that the Debt Service Levy can be increased without holding a Truth in Taxation hearing. Director of Finance Lehnhardt reviewed the City’s equalized assessed valuate (EAV), which staff estimates will increase approximately 3% in 2023 to $2.53 billion, including $8.4 million (or 0.34%) for new construction and $65.3 million (2.66%) of base growth. He noted that 17.6% of total parcels in the City by square mile are tax-exempt. In response to a Council question, Director of Finance Lehnhardt stated that over the last five years the percentage of tax-exempt parcels has remained approximately the same. Director of Finance Lehnhardt reviewed the proposed 2023 General Purpose Levy, which increased from $15.4 million to $16.5 million (or 7.1%), and the 2023 Debt Service Levy, which decreased from $5.2 million to $4.4 million (-20.8%). Even though the total overall levy of $20.6 million remained flat, the City would be required to conduct a Truth in Taxation public hearing due to the 7.1% increase in the General Purpose Levy, which represents the move of funds from the Debt Service portion to the General Purpose portion of the levy. In response to a Council question, Director of Finance Lehnhardt stated that the police and fire pension- related calculations are based on the most recent actuarial reports. Director of Finance Lehnhardt stated that staff recommends a slight increase in the total overall levy by $0.2 million (1%). In response to a Council question, Director of Finance Lehnhardt stated that previous preliminary discussions occurred prior to City staff acquiring financial projections for the library. The increase in the levy is recommended based on City staff’s assessment of the library’s budget in addition to requests from the library. The funding recommendation would contribute to the library’s operating expenses. Council members discussed City staff’s recommendation of a $200,000 increase in the tax levy to support library operating expenses. Some Council members highlighted other service areas of the City that have been identified as requiring additional funding and expressed support for determining where such funds were most needed. City Manager Dzugan stated that moving the library’s building renewal formula from that of a 75-year useful life to a 50-year useful life accounts for $110,00 in increased operational expenses. In response to a Council question, City Manager Dzugan confirmed that the change in renewal formula would be an increase incurred in future years, also. Some Council members expressed the desire to look at budgetary expenditures and revenues in a more holistic way with a framework for how the City will address increased expenditures. The discussion also considered whether the City would be interested the possibility of future growth as a revenue source to assist with increased expenditures.  Monday, October 9, 2023 CITY COUNCIL PLANNING SESSION MINUTES In response to a Council question, Director of Finance Lehnhardt stated that City staff can evaluate other revenue sources as opposed to this tax levy to provide the library with the $200,000, however he noted the library still has a structural deficit of approximately $160,000, and The tax levy is 92% of the library’s revenue. City staff sought direction on how the Council would like to proceed regarding the tax levy. Council members concluded the discussion by agreeing to the City staff’s recommendation to reallocate the $1,085,819 from Debt Service to General Purpose. However, the Council decided against providing the library with the $200,000. V. 2023 SSA #3 Streams Property Tax Levy – Estimate Director of Finance Lehnhardt stated that Special Service Area #3 was established in 1987 to provide maintenance of open spaces within the Streams Subdivision. The ordinance establishing SSA #3 allowed a maximum tax rate of $0.15 per $100 of assessed value. City staff recommend a flat levy of $12,092.48, which would produce an estimated tax rate of $0.0199. In response to a Council question, Director of Finance Lehnhardt stated that this maintenance is shown as a separate organization in the City’s budget. Each year, the City spends approximately $12,000 in this area. VI. 2023 SSA #8 Downtown Promotional & Municipal Services Property Tax Levy – Estimate Director of Finance Lehnhardt stated that the Downtown Wheaton Association (DWA) requested $275,000 for the 2024 budget and that City staff is recommending $150,000 for municipal services performed downtown. Special Service Area #8 has a maximum tax rate of $0.45 per $100 of assessed value for a maximum seven levy year term. The 2023 SSA #8 Extended Tax Levy of $425,724.00 increases $150,604.63 (54.7%) and would produce an estimated tax rate of $0.4207. The financial impact of the levy for a property owner depends on the change in the assessed value of their property from 2022 to 2023. As an example, a property with a $600,000 value will see a $305 annual increase. VII. Downtown Wheaton Association 2024 Budget Downtown Wheaton Association (DWA) Executive Director Allison Orr presented the DWA’s 2024 Budget. She stated that there will be three openings for the DWA Board in 2024 and thanked all Board members for their continue efforts. DWA Executive Director Orr provided 2023 highlights to include the opening of 16 new businesses; selling over 4,000 event tickets; $55,000 in sponsorships; hosting 570,000 visitors in the downtown; 11 ribbon cuttings and milestone celebrations; and over 100,000 website visits. The DWA created a brochure which includes a snapshot of data related to the downtown’s typical customer, community highlights, and visitor information. The intent of the data collected is to provide an overview of Wheaton and the downtown area to prospective and new business owners. The DWA recently hosted a Broker Walk, which covered much of this information, to generate interest in businesses moving to Wheaton.  Monday, October 9, 2023 CITY COUNCIL PLANNING SESSION MINUTES In response to a Council question, Executive Director Orr stated that the Broker Walk generated transactions in that one of the attendees has already moved into a new space and two other attendees are waiting for suitable properties which fit the needs of their respective businesses. DWA Executive Director Orr provided highlights of marketing, advertising, and public relations efforts in 2023 which include, but are not limited to, 44,056 postcards sent; multiple advertising campaigns with the Daily Herald; and over 30 notable press mentions related to Dinos Downtown Wheaton. Upcoming campaigns for the remainder of this year will focus on the Shop Local Downtown Wheaton television commercial, a Daily Herald feature on Small Business Saturday, a Christmas shopping digital campaign, and more. Related to the 2023 projected revenue highlights and 2023 budget, total non-SSA revenue is $352,277.64. Special Service Area #8 revenue is $275,000. Related to the 2023 projected revenue highlights and 2022 final financials, total non-SSA revenue is $324,965.99. Special Service Area #8 revenue is $275,000. In terms of percentage of total revenue from SSA #8, 2024 is projected to be at 47%. In response to a Council question, Executive Director Orr stated that the Character Trail event in the spring will feature characters in different stores throughout the downtown area. VIII. City Council/Staff Comments Councilman Barbier commended the DWA for performing excellent work and suggested that the Council research awards for the DWA’s successful Dinos Downtown Wheaton exhibit. Mayor Suess commended the DWA for a successful summer season, the Dinos Downtown Wheaton exhibit, and many other community events. He thanked the DWA staff for their efforts and contributions to the community. Councilman Weller congratulated the Wheaton Warrenville South High School’s Men’s Golf team. The team recently won the title of 2023 Dukane Conference Champions and received several other regional and state accolades. IX. Adjournment The meeting was adjourned at 8:12 p.m. Respectfully submitted, Halie Cardinal