Wilmette Park District
Financial Planning & Policy Committee
Tuesday, September 30, 2014
7:15 p.m. – Village Hall Training Room
Commissioners/Committee: Chair Olvany, Benz, Brault
Commissioners: Crowley, Abbott
Staff: Wilson, Eppelheimer, Bingham, Lambrecht, Bowen, Felicicchia
I. Meeting Called to Order
Meeting called to order 7:17 p.m.
II. Approval of Minutes
A. Commissioner Benz moved to approve the minutes from August 25, 2014, seconded by Brault; all voted yes, the motion carried.
III. Communication and Correspondence
IV. Recognition of Visitors
V. Unfinished Business
A. Non-Tax Revenue, Advertising on WPD Property – Deferred
B. Uniform Budget Increases
Superintendent Eppelheimer stated that a preliminary memo went out to staff reflecting the following:
• Taxes – 2014 Levy, Collected in 2015 – plus CPI-U on 2013. Tax cap legislation has set the tax levy increase to be the lower of the CPI-U for the prior year or 5%. The 2013 CPI-U was 1.5% so this was applied to the 2013 tax levy for the 2014 Capped Funds. Judging from the last couple of years, the total levy will likely be capped on the aggregate levy and probably the Special Recreation Fund.
• Program Fees – 3.0% for 2015. Given that taxes are somewhat held in check, and the CPI-U for 2014 is estimated to be in the 2.0% range, fee increases of 3.0% should be used for 2015. We should see a general increase in fees as a result of Golf being available for the 2015 season. Differences to this overall increase will be highlighted during the individual Committee meeting discussions on the 2015 budget.
• Salaries and wages are the District’s largest expense item, given that we offer so many services that require staff involvement. We are recommending different salary pool rates for different classes of employees.
o Full Time – Pool of 2.75% for 2015. This class directs, manages and performs the day to day activities of the District. The pool is 2.75% (based upon a 2014 CPI-U in the 2.0% range).
o Part Time – Pool of 2.5% for 2015. These employees perform part-time oversight, may have direct program contact with our patrons or provide facility support hours to assure patrons are safely served. These employees include instructors, maintenance laborers, attendants, camp counselors and life guards. The pool is 2.5% for 2015.
• Employee Benefits
o Health Insurance – 9.5% for 2015. The District provides health benefits through PDRMA Health. This preliminary increase is estimated at 9.5%. Employees pay between 10% and 15% of the premiums depending upon coverage and their contributions will increase accordingly as health insurance premiums increase.
o Retirement Benefits – Flat for 2015. The District contributes to Social Security, Medicare and Illinois Municipal Retirement Fund (IMRF). These are supported by the tax levy. It is not expected that Social Security or Medicare percent contributions will increase but the base for Social Security may increase slightly in 2015.
o Electric – Flat for 2015. We continue under our signed service contracts through the end of this year and should see little increase in electric costs in 2015. New contracts will be locked for three years beginning in 2015.
o Natural Gas – 18% for 2015. Natural Gas; contracts were renewed with an 18% increase in May, so the 2015 increase should be about 6% because 2014 has 8 months or 2/3 of the year with new rates. Consumption during 2014 was higher with the cold winter; fortunately this was at the prior, lower price.
o Water and Sewer – Flat for 2015. The Village has yet to respond to a water question.
o Cable and Communication Services – 3.5% for 2015.
o Custodial Services – 2.5% for 2015.
o Gasoline and Diesel Fuel – Flat for 2015. The average retail price of regular-grade gasoline for January through August 2014 in the greater Chicago was $4.00 per gallon. The last District purchase was $3.32 as we are exempt from State sales tax. Early in the season the District was paying $3.64. This is estimated that prices will be flat to 2014 levels.
• Supplies and Repairs
o Assume a 2% increase in general supplies and repairs.
o Assume a 2% increase and Administration will load this information in the budget management area of Incode.
These percentages were used to update the interactive budget projection spreadsheet produced by Director Wilson and displayed during the Committee Meeting. This set the stage for discussion on the Capital Improvement plan. No action was required by the Committee.
VI. New Business
A. 5 Year Capital Improvement Plan
Superintendent Eppelheimer explained the process staff took in development of the Capital Improvement Plan (CIP). The plan develops both long and short term goals for the District’s capital assets to provide high quality recreational activities for its patrons. The proposed year of 2015 is used as a basis of appropriating funds as part of the Budget and Appropriations Ordinance.
Commissioner Olvany asked for clarification on the West Park reimbursement plan with the Village. Director Wilson stated that we are paying for the artificial field turf and being reimbursed by the Village for up to $1.5 million.
Superintendent Eppelheimer stated that one of the processes of the CIP is prioritizing items to make sure they fit our general priorities of high, moderate and low based on maintaining current levels of programs. He stated that A Priorities for 2015 total $386,000 or 20% of the plan; B Priorities total $1,494,200 or 79%; and C Priorities total $19,000 or 1%. He stated that if you take out of the capital plan the field turf and the Lakefront Master plan the planned capital expenditures would be $1,899,200.
Commissioner Brault stated that the interactive presentation should have separate line items of West Park Turf and Lakefront Master Plan. Director Wilson changed the spreadsheet to reflect the separate line items.
Commissioner Brault asked if we spend dollars now and we are successful in the referendum can the referendum proceeds be used to reimburse these expenditures. Superintendent Eppelheimer will check with BMO Capital on what amounts and timing can be reimbursed before the referendum, but recalls the District can reimburse for expenses. (BMO confirmed that we may go back 90 days and if we need to go further, a resolution maybe used.) Director Wilson stated that this plan will go to each of the Operating Committees for review and then it come before a Committee of the Whole meeting with all the Board members.
Commissioner Brault asked staff for a line item summary report for each year along with the pie chart to reflect the actual amounts within the pie chart. Superintendent Eppelheimer will add this chart for the next meetings.
No action was required by the Committee at this time.
B. Discussion related to hiring external professional service providers
Commissioner Olvany asked the Committee if we should have a policy in place for scheduled reviews of professional services to the District. He asked what our policy is and what is legally required on service providers. Director Wilson stated that we do not have an actual policy in place but we follow any and all related state statutes that are required. He stated that Superintendent Eppelheimer will network to see what types of polices or procedures other districts are using. He stated that we will bring some options back to the Committee for their input. No action was required by the Committee.
VII. Next Meeting
The next meeting is scheduled for October 27, 2014.
There being no further business to conduct, the meeting was adjourned at 8:07 p.m.