10/20/2018Village of Deerfield
Committee of the Whole
October 20, 2018
Robert D. Franz Council Chambers
Present: Harriet Rosenthal, Mayor
Robert Benton
Tom Jester
Mary Oppenheim
William Seiden
Dan Shapiro
Absent was: Barbara Struthers
Also present: Kent Street, Village Manager
Andrew Lichterman, Assistant Village Manager
David Fitzgerald, Management Analyst
Matt Weiss, IT Systems Coordinator
Eric Burk, Finance Director
Bob Phillips, Acting Director of Public Works and Engineering
Justin Keenan, Asst. to Director of Public Works and Engineering
Tyler Dickinson, Staff Engineer
John Sliozis, Police Chief
Jeff Ryckaert, Principal Planner
Dan Nakahara, Planner
The meeting was called to order at 9:30 a.m.
Public Comment
There were no Public Comments.
2019 Budget Discussion
Mr. Burk outlined his memo reducing the proposed budget by $325,832 to keep the property tax
levy level with the prior year. He noted it includes abating debt service for the 2018 bond
issuance and a portion of the 2017 issuance. He outlined a $75,000 decrease in expenses over
multiple departments, a $50,000 increase in the Hotel Tax estimate for 2019, a $25,000
administrative transfer from the Water Fund, and a $25,000 administrative transfer from the
Sewer Fund. Village reserves would cover the remainder.
Trustee Seiden inquired about the bond abatements. Mr. Burk stated it would come from reserves
passed through the general fund. Trustee Shapiro proposed increasing the hotel tax by one
percent. He believes it is in line with surrounding communities and would raise more than
$300,000. Mayor Rosenthal stated the tax would not be felt by residents. Trustee Benton noted it
could help offset any reductions felt by the closure of Takeda. Trustee Shapiro believes it will
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October 20, 2018
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not keep people from staying in Village hotels. Trustee Oppenheim would like to increase the
hotel tax rate and keep the other budget reductions proposed by Mr. Burk the Board agreed.
Mayor Rosenthal inquired when the Village will no longer need to pay extra into the police
pension to bring it up to the required amount. Mr. Burk stated it will take time, noting that
changing GFOA standards have raised the funding bar to maintain a high credit rating.
Water Fund
Mr. Street reported the City of Highland Park is raising water rates by 15 percent for residents
and wholesale customers, such as the Village. Mr. Street stated Highland Park will be providing
estimates for future year rate increases shortly.
Mr. Burk discussed his memo outlining the outcome of raising Village water rates by 9 percent,
7.5 percent or 4 percent. He noted that raising rates by 9 percent would achieve an outcome
equal to the assumptions that were included in the proposed budget, prior to Highland Park
raising wholesale rates. Mayor Rosenthal inquired why the increase is not 15 percent. Mr. Burk
noted that there are other cost factors involved in delivering water and the wholesale cost is
responsible for about 2/3 of the total rate. Trustee Oppenheim would like to pass the increase
along to Village customers. Trustee Jester asked if these figures included the reduced water loss
figures. Mr. Burk stated that they do.
Trustee Shapiro asked about the increase on a regular water bill. Mr. Burk noted that it would be
about $12 more per quarter. Trustee Shapiro would like the increase to be explained in D-Tales
to residents. Trustee Jester asked if Highland Park’s costs went up. Mayor Rosenthal noted that
they have extra overhead and need to pay back their bonds on the new water treatment plant. The
consensus was to pass along the cost to water customers.
Departmental Budget Requests Finance
Mr. Burk outlined the Finance Department Budget. He noted there may be an amendment to the
2018 budget due to the Walgreens incentive being higher than projected.
Administration
Mr. Lichterman reviewed the Administration Department budget. Trustee Seiden inquired about
training expenses. Mr. Lichterman noted that some members were unable to attend training this
year but they are expected to attend next year. Trustee Shapiro noted that contractual services
should be increased to cover possible legal expenses. Mr. Street noted that the retainer agreement
and spending will be reviewed by the end of the year. Mr. Lichterman noted that Administration
cut $10,000 since the first budget meeting.
Information Technology
Mr. Weiss reviewed the IT budget. The major highlights include secondary data center storage
equipment, a village hall data center air conditioner, an e-mail security gateway service and
cloud disaster recovery for business continuity. Trustee Oppenheim asked if the e-mail service
was a one-time expense or an annual subscription. Mr. Weiss noted it would be an annual
subscription. Trustee Jester asked about the offsite disaster recovery location. Mr. Weiss noted
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October 20, 2018
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that it would be located far away from the Village in case of a large-scale disaster. Mayor
Rosenthal discussed the new iPads for the Village Board and requested that all trustees get
Village-issued e-mail addressed for ease with responding to Freedom of Information Act
requests. Mr. Weiss noted that due to the age of the current iPads, they no longer get security
upgrades from Apple.
Trustee Shapiro inquired about future IT funding needs. Mr. Weiss stated that he only buys items
when needed and looks to get devices that will last. He looks to keep the hardware capable of
handling Village operations. Mr. Lichterman noted that new equipment and service demands also
requires more staff training and expertise. Trustee Seiden thanked Mr. Weiss and staff for being
so careful with Village funds and budget justifications.
Affordable Housing
Mr. Lichterman reviewed his memo on affordable housing. Mr. Lichterman noted that State’s
definitions of affordable housing. He noted that outside community housing groups can
administer affordable housing units in market rent buildings such as Reva. It would cost about
$20,000 per year for these groups to manage a couple dozen affordable housing units inside of a
larger development. Trustee Jester asked what the Village needs to do to meet State limits. Mr.
Lichterman noted that the Village can set its own limits as a home rule community but the State
would limit rents to 120% Area Median Income. Trustee Jester would like to follow the State
definition.
Trustee Oppenheim would like to have ordinances in place that memorialize a commitment to
affordable housing. Trustee Jester noted that Reva’s scale is unique in its size and merits a
discussion of including affordable housing. He believes the Village should negotiate with Reva
to get affordable housing as set forth in the comprehensive plan. Mayor Rosenthal stated the
comprehensive plan does not have specifics in place making it difficult to enforce.
Trustee Shapiro would like affordable housing attached to a PUD and provide density incentives
to allow for more affordable housing units. Trustee Oppenheim noted that this could be based on
the size of a development to exclude small PUDs with only a few units. Trustee Shapiro agreed.
Mr. Lichterman noted that the Plan Commission considered the topic of affordable housing a few
years ago and recommended that a subcommittee study the matter further. Trustee Oppenheim
stated that the Plan commission always asks developers about affordable housing, but does not
have clear guidelines from the Board to convey to developers. Mayor Rosenthal noted that Reva
told her that they would have approached the project differently had they known upfront about
an affordable housing requirement. Mr. Lichterman noted that a PUD above a certain size could
trigger a new special use standard of “affordability” that defines the requirement for petitioners.
Trustee Jester believes that Reva can be used as a precedent for other big developments going
forward. Mr. Lichterman asked if there is a consensus that the Village pay the annual cost for an
outside agency to manage affordable housing. Trustee Jester believes that it is important for an
outside agency to be involved.
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Trustee Shapiro would like a committee to review the issue and recommend guidelines to
establish affordability as a requirement in PUDs. Trustee Oppenheim would like to establish
placeholder regulations soon while a more detailed affordable housing regulations are developed.
Trustee Shapiro would like it to be tied to a special use or PUD.
Trustee Seiden noted that as a home rule community, the Village does not need to have any
affordable housing requirement.
Mr. Street noted that staff would bring more information to the Board about how affordability
could be a special use standard for PUDs above a certain size.
Trustee Oppenheim motioned to go into closed session to discuss personnel pursuant to 5 ILCS
120/2(c)(1) and 2(c)2 of the Open Meetings Act. Trustee Shapiro seconded the motion. The
motion passed on a voice vote and adjourned to closed session at 11:01 a.m.
Respectfully submitted,
David Fitzgerald,
Management Analyst