WILMETTE PARK DISTRICT
Financial Planning & Policy Committee
Monday, August 22, 2016
6:30 p.m. – Village Hall Training Room
Amended: September 26, 2016
Commissioners: Chair Anderson, Abbott
Staff: Executive Director Wilson, Superintendent Eppelheimer, Manager Holloway
Committee Members Absent
I. Meeting Called to Order
Meeting was called to order at 6:30 p.m.
II. Approval of Minutes
A. Commissioner Abbott moved and Commissioner Anderson seconded a motion to approve the minutes of the July 25, 2016 Financial Planning & Policy Committee meeting. All voted yes; motion carried.
III. Communication and Correspondence
IV. Recognition of Visitors
V. Unfinished Business
A. Professional Services Review – Health Insurance Time Line
Superintendent Eppelheimer reviewed the updated time line for health insurance renewal including the processes that were completed since the last meeting. The Committee received an updated 10 year history of costs that included a cost per employee. There was discussion on PDRMA Member Balances, plan design for the coming year, proposals recently received from two brokers, other employee benefit cooperatives, and next steps within the renewal time line. There was no action needed or taken by the Committee.
VI. New Business
A. Draft Resolution 2016-R-3 – Notice of Membership Termination, PDRMA Health Plan
The discussion transitioned to the required notice to PDRMA if the District decides to go to another benefit program provider. Staff briefed the Committee on other cooperative pools that serve public entities. The Committee reviewed the draft Resolution and the timing concerns. The Committee wanted to assure that another provider and course of action would be assured before approving the Resolution since rescinding the Resolution may not be approved by PDRMA once presented. The Committee discussed options and felt a Special Board meeting could be held in early October, possibly after the October 3rd Lakefront Committee, if necessary. This would provide staff time to review renewal rates from PDRMA, broker proposals and recently discovered cooperatives. There was no action needed or taken by the Committee.
B. 2017 Uniform Budget Increases
Executive Director Wilson began the discussion outlining the key financial objectives of the 2017 budget: keep the Board target fund balance of $4 million; fund the projected costs of the agreed upon Lakefront work; maintain operational surplus the same as current levels; and provide funding for the other capital needs throughout the District.
Next, Executive Director Wilson reviewed the estimated Lakefront work including professional fees, contingency, cost escalation and timing of these expenses over three years starting in 2017. There was discussion regarding the fairness of these amounts as refinement needs to be done.
Projections for year-end were made by Administration and the recommended increases from the Uniform Budget Increase memo were applied to the 2016 year-end projections to provide a base line 2017 budget. Note that staff is preparing their projections and budgets during the month of September.
Next a spreadsheet was prepared using baseline information and projecting results out to the year 2025. This showed operating surplus year over year to assure our assumptions kept funding positive. Debt was reviewed including tax supported and the possible change in the timing of the issuance of the Debt Service Extension Base (DSEB) from every three years to a six year issue in 2018 and a three year issue in 2024. This provided advance funding for assets with more than 30 years of life with six years of tax supported, non-referendum debt. The bottom line showed an ability to keep the total fund balance above the target of $4 million, perform Lakefront work and still provide for other capital needs throughout the District.
The Committee discussed several changes to the assumptions and could see the effect of lower fee increases and higher costs. Generally, the Committee agreed with the uniform budget increase assumptions presented after discussing several expense categories in detail.
The Committee moved to recommend the Uniform Budget Increases as presented by staff and that variances to these increases be reviewed with each operating committee during the 2017 budget discussions.
VII. Next Meeting
The next meeting is scheduled for September 26, 2016 at 6:30 p.m.
There being no further business to conduct, the meeting was adjourned at 7:47 p.m.