WILMETTE PARK DISTRICT
Financial Planning & Policy Committee
Monday, August 24, 2015
6:30 p.m. – Village Hall Training Room
Committee/Commissioners: Chair Abbott, Wolfe, Pellaton
Staff: Director Wilson, Superintendent Eppelheimer
Superintendents: Lambrecht, Bingham, Bowen
I. Meeting Called to Order
Meeting called to order 6:31 p.m.
II. Approval of Minutes
A. Commissioner Wolfe moved and Commissioner Pellaton seconded a motion to approve the minutes of June 22, 2015 Financial Planning & Policy Committee meeting. All voted yes, the motion carried.
III. Communication and Correspondence
A. Comments by David Ennis
Commissioner Abbott indicated that communications had been received from David Ennis and asked if he would like to speak to the Committee. Mr. Ennis discussed his Asset Preservation Budget with the Committee due to his belief of misallocation of tax revenues between the school district and the park district. He would like to see the District implement his plan or close to it. Commissioner Wolfe asked if Mr. Ennis had discussed this with the school board for their input. Mr. Ennis said he had discussed this with Superintendent Lechner of District #39. The Committee emphasized that they do not see how major capital projects cannot be in the budget. Commissioner Abbott thanked Mr. Ennis for his comments.
IV. Recognition of Visitors
David Ennis, Allison Chaplick
V. Unfinished Business
A. IMRF Retirement Pension Plan
Superintendent Eppelheimer summarized the 19 pages of information provided to the Committee. The Illinois Municipal Retirement Fund (IMRF) is in good financial condition. He explained how the funding was achieved, how the retirement pensions are supported, how the accounting is presented on the employer level. He also discussed the long term outlook of the plan. Discussion of the net pension obligation, the employer retirement reserve and the targeted funding levels were also covered. Commissioner Abbott commented on the spiking that occurred which was due from accrued sick days and vacation days. Superintendent Eppelheimer stated that laws have been in place to protect the pension plans and the long term payouts. Commissioner Abbott asked if the District policies in regards to vacation and sick days are in place to protect the District from such spiking. Director Wilson concurred that the District’s policies are conservative to protect against higher pensions. There was no action recommended by the Committee at this time.
VI. New Business
A. 2014 Tax Levy Results
Superintendent Eppelheimer presented information on the 2014 equalized assessed valuation (EAV), the tax levy and the collection of real estate taxes. Historical information provided a back ground for the discussion. The Committee discussed the 2015 tax cap of 0.08%, the reduced debt portion of the levy and net result these will have on the 2015 tax levy. The reduction of the 2015 tax levy from the 2014 tax levy, by about 7%, lead into the following discussion of the uniform budget increases. Superintendent Eppelheimer stated that the District is fortunate to obtain almost 100% of the levy. Director Wilson stated that it is important to point out that ultimately we receive what is levied and that is because the 2% the county adds for losses. Superintendent Eppelheimer stated that the EAV went up a little bit after four years of decreases of 32% over that period of time. There was no action required by the Committee at this time.
B. 2016 Uniform Budget Increases
Superintendent Eppelheimer presented staff recommendations on general increases in preparing the 2016 budget. Expenses of employee benefits, utilities, fuel, contractual services, supplies and repairs were explained. The Committee discussed the health insurance. Employees pay between 10% and 15% of the premiums depending upon type of coverage and their contributions will increase accordingly as health insurance premiums increase. PDRMA offers many options for wellness with incentives for healthier lifestyles. Program fee increases were viewed in relationship to these increases along with increases proposed for the merit increase pools. Impact of proposed minimum wage and separate pools for full time and part time staff were discussed.
Commissioner Wolfe asked how the District came up with a 3% increase for salaries. Director Wilson stated that this is in the ball park of what has been given the last few years. He stated that 3% is not given across the board it is performance based. Superintendent Bingham stated that with the smaller increases it does not provide much opportunity to reward the top notch employees.
The Committee discussed taking a recess to have Commissioner Abbott call Commissioner Olvany to discuss this further. Commissioner Wolfe moved to go to recess at 7:40 p.m. and Commissioner Pellaton seconded a motion. All agreed. The Committee reconvened from the recess at 8:03 p.m.
Commissioner Abbott stated he discussed the merit increase pool with Commissioner Olvany who observed the 3% was higher than he expected. Commissioner Abbott passed along Commissioner Olvany’s comments that the tax base was going up less than 0.8% and inflation continues to run low. Also a point was made about the insurance premiums and that employees are considerably protected against the inflationary pressures more than the private sectors.
The Committee recommended Program Fee increase to be in the 5% range, merit increase pools to be 2.75% and other expenses to be those recommended by staff. No action was needed by the Committee and general differences to these recommended increases will be discussed at the Standing Committees during budget review.
C. Fixed Asset Inventory
Superintendent Eppelheimer presented the proposal from AssetWorks for the physical inventory of fixed assets at West Park (excluding the Platform Tennis facility); the Wilmette Golf Course; Centennial facility; the Community Recreation Center and Gillson Park. Expected cost for the inventory will be $5,300 and take about 90 days. There was discussion on a replacement value recommendation by the consultant, but they are not qualified nor were asked to perform a conditions study. No action was needed by the Committee since the amount is within the approval level of the Executive Director.
D. Professional Services
Superintendent Eppelheimer reviewed the schedule for professional services. The Financial Planning & Policy Committee recommended professional services occasionally be reviewed whether or not changes are actually made. Accounting has been preparing information to send out a request for proposed banking services. Proposals would have to save the District a fair amount of fees given the impact for change in the District’s financial systems. This was an update to the Committee and no action was required.
E. 2nd Quarter 2015 Financial Results
Superintendent Eppelheimer briefly reviewed the 2nd Quarter Financial Statements. There were question on the District’s cash position, the amount on deposit with Illinois Funds and where the District may end the year. There was no action required by the Committee.
VII. Next Meeting
The next meeting is scheduled for September 28, 2015 at 6:30 p.m.
There being no further business to conduct, the meeting was adjourned at 9:23 p.m.