MINUTES Executive Board Meeting Monday, September 9, 2013
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1 Karen Y. Darch President, Village of Barrington Executive Board Chair Thomas Weisner Mayor, City of Aurora Executive Board Vice Chairman Rahm Emanuel Mayor, City of Chicago Executive Board Secretary Monday, I. Call to Order and Welcome Karen Y. Darch, Executive Board Chair and President of Barrington, representing the Northwest Municipal Conference, called the meeting to order at 9:00 a.m. at the offices of the DuPage Mayors and Managers Conference, 1220 Oakbrook Road, Oak Brook, Illinois. Others in attendance included: Directors Mayor Gerald R. Bennett, Palos Hills (representing the Southwest Conference of Mayors) Mayor Jim Holland, Frankfort (representing the Will County Governmental League) Mayor Teresa Kernc, Diamond (representing the Will County Governmental League) President Daniel J. McLaughlin, Orland Park (representing the Southwest Conference of Mayors) Mayor William McLeod, Hoffman Estates (representing the Northwest Municipal Conference) Mayor Jeffery D. Schielke, Batavia (representing the Metro West Council of Governments) Mayor Jeffrey T. Sherwin, Northlake (representing the West Central Municipal Conference) President Erin Smith, Lakewood (representing the McHenry County Council of Governments) Mayor Gayle A. Smolinski, Roselle (representing the DuPage Mayors and Managers Conference) Michael Ruemmler, Deputy Director of Government Affairs (representing the City of Chicago) Others Mark A. Baloga, Executive Director DuPage Mayors and Managers Conference Mark L. Fowler, Executive Director, Northwest Municipal Conference Christine Gentes, Executive Director, Lake County Municipal League Tam Kutzmark, Transportation and Planning Director, DuPage Mayors and Managers Conference Christopher B. Meister, Executive Director, Illinois Finance Authority Edward Paesel, Executive Director, South Suburban Mayors and Managers Association Steven A. Quigley, Executive Director, Will County Governmental League Vicky Smith, Executive Director, Southwest Conference of Mayors David Bennett, Executive Director, Metropolitan Mayors Caucus Edith Makra, Director of Environmental Initiatives, Metropolitan Mayors Caucus Allison Milld Clements, Director of Housing Initiatives, Metropolitan Mayors Caucus II. III. Approval of Minutes: July 8, 2013 Meeting Mayor Gerald Bennett of Palos Hills moved for the approval of the minutes of the July 8, 2013 Executive Board meeting. Mayor William McLeod of Hoffman Estates seconded and the motion was unanimously adopted. Presentation: Financing Resources for Municipalities Board Chair Darch introduced Christopher Meister, Executive Director of the Illinois Finance Authority. Mr. Meister began his presentation by stating that his Agency is looking to re-engage with local governments so they can take full advantage of the financing resources available to them. City of Chicago DuPage Mayors and Managers Conference Lake County Municipal League McHenry County Council of Governments Metro West Council of Governments Northwest Municipal Conference South Suburban Mayors and Managers Association Southwest Conference of Mayors West Central Municipal Conference Will County Governmental League 233 South Wacker Drive, Suite 800, Chicago, Illinois Tel: Fax:
2 Page 2 He then went on to review the various products the Finance Authority currently offers. These included the low-interest revolving loan program for wastewater and drinking water projects available through the Illinois Clean Water Initiative; the Local Government Revenue Bond Program; the Local Government Pooled Bond Program; the Fire Truck Revolving Loan Program and the Emerald Ash Borer Revolving Loan Program. Mr. Meister spent most of his presentation focusing on the Clean Water Initiative. He noted that the monies now available through the revolving loan fund are inadequate to meet the needs of the local governments in the State. The fund provides $300 million annually, while the need exceeds $29 billion. Mr. Meister said that the IFA has plans to increase the amount of available funds to $1 billion per year. He also noted that despite the fact that it only makes $300 million available annually, Illinois revolving loan program has been the most successful one in the country. This was attributed to two factors: interest rates that are half those of other loan programs in the capital market; and the IFA s practice of using its funds to leverage additional funding from federal sources. The hope is that by increasing the fund to $1 billion per year, the program will be even more successful. Mr. Meister concluded his remarks by suggesting that the IFA would like to maintain communications with the Mayors Caucus, the suburban COGs and individual municipalities to ensure local governments are maximizing the use of the capital financing dollars the Agency can access. He also said that he believes its important for the State to work with municipalities to ensure that it is providing financing options that meet their changing needs. Several Mayors praised the IFA for loans their communities received over the years. They also described some limitations inherent in the program, however. Mr. Meister said that the Agency is aware of this issues and is exploring ways to resolve them in the future. He said they are trying to think out of the box and broaden the types of projects that are eligible for funding. IV. Policy Area: Legislative A. State Updates Mayor Bennett, the Legislative Policy Area Leader, gave updates on the following legislative issues: 1. Pension Reform The House-Senate Conference Committee has met continuously since mid-june to work on a bill which will reform the State pension systems. State Representative Elaine Nekritz, the House Co-Chair of the Committee, recently stated on a radio interview that the Conference Committee Has identified a very comprehensive list of reform ideas that are currently being analyzed by actuaries. What actually is included in the Committee s recommended package will not be known until the analyses are done. 2. Fire Consolidation State Senator Terry Link has prepared another amendment to SB 1681, the fire consolidation bill written by the fire unions. Our review of the amendment shows that will some improvements have been made, it still includes objectionable language which requires a Committee separate and apart from a City Council or Village Board to control the process by which consolidations could occur. Employee groups would make up the majority of the Committee s membership. The IML, the Mayors Caucus, the COGs, and the Fire Protection Districts will meet later this month to discuss a joint response to this latest amendment. They will also devise a recommended strategy on how to kill the bill in the fall veto session.
3 Page 3 V. Policy Area: Transportation A. Transit Reform Update Mayor Jeffery Schielke of Batavia, the Transportation Policy Area Leader, gave updates on two transit Reform developments. First, he reported on a recent meeting of the Caucus Transit Improvement Working Group at which former RTA Executive Director, Steve Schlickman, and current RTA Board Member, Ike Magalis, were guests. The Group had a very frank discussion with Messrs. Schlickman and Magalis about the Agency s current structure, how it allocates funds, the legislative constraints under which it operates and possible reform ideas. Second, Mayor Schielke gave an update on the Governor s Transit Reform Task Force. The Task Force was formed by Executive Order in mid-august and held its first meeting just last week. It is charged with making interim recommendations by October 15 and final recommendations by January 31, VI. Policy Area: Economic Development A. Brookings Institution: Discussions with Authors of Confronting Suburban Poverty: September 25 & 26 Mayor Jeffrey Sherwin of Northlake, the Economic Development Policy Area Leader, announced the sessions to be held in the Chicago region later this month with the authors of a report recently released by the Brookings Institution entitled, Confronting Suburban Poverty. The first session will be for Mayors only on September 25 at Hamburger University in Oak Brook. The second is a larger event for all interested municipal officials which will be held on September 26 at the Federal Reserve Bank of Chicago. Mayor Sherwin encouraged Board Members to attend the Mayors only event and invite their staff or other officials to the program at the Fed. B. Vacant Property Ordinance Update: FHFA v. City of Chicago Mayor Sherwin asked Allison Clements, Director of Housing Initiatives, to report on this topic. She indicated that the Caucus is working with BPI and the Woodstock Institute to provide training to municipal leaders on best practices related to vacant property ordinances. The intent is to do several sessions throughout the region beginning in December. Ms. Clements said she would work with the COGs to spread the word about the events. C. Caucus, CMAP Awarded IL Attorney General National Foreclosure Settlement Grant Ms. Clements also reported the good news that the Mayors Caucus has been awarded a $335,000 grant by the Illinois Attorney General s Office to work with a team of partners (South Suburban Mayors and Managers, The Center for Community Progress, Metropolitan Planning Council and Ancel Glink) to help the southern suburbs address the presence of investor-owned small multi-family and single-family rental properties in the area. The source of the grant funds is the State s share of the nation foreclosure lawsuit settlement. Ms. Clements also noted that the Caucus was also part of a successful team application submitted by CMAP. That grant, which is for $448,000, will help CMAP, the Caucus and MPC to create a toolkit and provide training that will allow communities to produce their own Homes for a Changing Region plans. VII. Policy Area: Administration A. FY 2014 Mayors Caucus Budget Roselle Mayor and Administration Policy Area Leader Gayle Smolinski introduced the Caucus proposed annual budget for FY 2014.budget. She stated how pleased she was to present a budget that was balanced
4 Page 4 and once again held the line on membership dues. She asked Executive Director Dave Bennett to provide further details. Mr. Bennett reiterated that the budget was indeed balanced with expenditures and revenues equaling $3,789,562. He said that this is a 335,088 or 9.7 percent increase from FY The increase is all attributed to an increase in the number of grants the Mayors Caucus has been awarded. Mr. Bennett noted that the Mayors Caucus currently has twelve grants which support various projects. In addition, he pointed out that almost two-thirds or $2.5 million of the proposed budget will be re-granted to Caucus member municipalities, partner organizations and other related local governments in the region. This includes $1.5 million for energy efficiency projects; about $540,000 in assistance with the Emerald Ash Borer infestation; and approximately $460,000 for regional housing projects. Mr. Bennett noted the following highlights as well: Day-to-day operating expenses in FY 2014 are projected to be $824,603 or 21.8 percent of the total budget. In addition to the $2,496,934 in re-grants, the budget calls for $468,025 in payments to consultants with whom the Caucus works on various initiatives. Personnel expenses account for $445,150 of the proposed budget. This is an increase of $54,201 or 11.9 percent from what is the projected year end for FY The FY 2014 salary line item allows for hiring two interns. It also includes 3.5 percent increases for current staff. Employee benefits are proposed to be $18,849 higher in FY 2014 than the projected year end in FY This is almost a 20 percent increase. It is due primarily to increased transportation expenses, employer payroll taxes and increased health insurance costs. With the amounts proposed for re-grants in FY 2014, the Mayors Caucus has sub-granted nearly $10.4 million to its members, partner organizations and other area local governments over the past three years. This includes $7 million for energy efficiency projects; $2.4 million in EAB assistance and $1 million for housing initiatives and service delivery studies. Following Director Bennett s presentation, Mayor Smolinski made a motion to approve the FY 2014 Budget as proposed. Mayor Sherwin seconded and the motion was unanimously adopted. VIII. Policy Area: Environment With Mayor Thomas Weisner of Aurora on a trip out of the country, Chairman Darch asked Edith Makra, Director of Environmental Initiatives to handle the following reports: A. Emerald Ash Borer Grant Program Update Ms. Makra reported on the successes of the Caucus EAB grant program and how it has provided much needed assistance to municipalities throughout the region. While funds granted in FY 2013 will be sub-granted to local governments currently in the queue in FY 2014, it appears as though no new grant dollars will be available in FY Ms. Makra stated that there is definitely demand for additional grants in the region, however, because of the recent forest fires in other parts of the country, the federal government is directing its forestry funds there.
5 Page 5 B. Caucus Awarded Public Sector Energy Efficiency Grant Ms. Makra announced that the Mayors Caucus has received a $2,000,000 grant from the IL Department of Commerce and Economic Opportunity s Public Sector Energy Efficiency Program. This is the third year in a row the Caucus will administer the Program. $1.6 million will be re-granted to local governments in the region for various energy efficiency projects. The Caucus is working with 360 Energy, the project consultant, to announce the funding opportunity and Solicit eligible projects. Ms. Makra asked Board Members who might be interested to contact her. IX. Event Recaps A. July 31, 2013 Quarterly Meeting with Gubernatorial Candidates The Board discussed the July 31 quarterly meeting at which the Democrat candidates for Governor appeared. The consensus was that it was a highly successful meeting both in terms of the number of Mayors who attended as well as having the two announced candidates there. Mr. Bennett noted that he will begin work to schedule a quarterly meeting in the fall which will feature the Republican gubernatorial candidates. B. September 6, 2013 Annual Gala The Board concurred that the Annual Gala held this past Friday at The Art Institute of Chicago was another resounding success. Chairman Darch thanked Caucus staff for the week that went into the event. X. Other Business None. XI. XII. Next Board Meeting President Darch announced that the next Board meeting will be held at CMAP in downtown Chicago on Tuesday, November 12, 2013, at 9:30 a.m. The meeting is on a Tuesday due to the fact that CMAP is closed that Monday to observe Veterans Day. Adjournment A motion to adjourn was made and approved at 10:35 a.m. Respectfully submitted, David E. Bennett Executive Director
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