Finance & Personnel Committee 2027 Budget Hearing - October 5, 2026

The Finance & Personnel Committee, chaired by Alderwoman Marina Dimitrijevic, convened on Monday, October 5, 2026 at 1:07 PM to review the Mayor's proposed 2027 budget for three areas: Deferred Compensation, the Employees' Retirement System (ERS), and the Health Department. The meeting adjourned at 3:48 PM. All five committee members were present (Dimitrijevic, Burgelis, Spiker, Coggs, Moore). The single agenda item (260001) was held to the call of the chair on a 5-0 vote.

Deferred Compensation

• The proposed 2027 budget includes a $36,000 increase (6.6%) to $797,000, fully funded through participant fees. No changes in positions or FTEs.
• Executive Director Beth Conradson-Cleary reported that the department received the national NAGDCA President's Award for 2026, the highest industry achievement. The fund has 10,199 participants, a 91% participation rate, and a fund value of nearly $1.5 billion.
• A new auto-increase feature (1% annually) will begin with open enrollment. New employees default to 3% contributions. Alderman Spiker questioned why new employees are not defaulted to 7%; Alderwoman Coggs supported the lower default to encourage participation among employees of color.
• The Voya contract is expiring; an RFI process is underway with four finalists, and a six-month renewal was approved. Alderman Moore requested data on financial wellness program participation trends.
• Alderwoman Dimitrijevic praised the holistic approach combining physical and financial wellness.

Employees' Retirement System (ERS)

• The proposed 2027 ERS budget is $273.4 million, an increase of $12.2 million. The city's pension contribution is $197.7 million; the contribution for WRS (Act 12) is $16.5 million.
• Actuary Larry Langer noted that benefit payments increased 21.7% from 2019 to 2025 and are projected to peak around 2050. The discount rate is 6.8% (set by Act 12), close to the national average of 7%. Investment returns in 2025 were 12.88% ($756 million); the 10-year average is 9%.
• Alderman Coggs questioned staffing: 5 of 51 positions are vacant; a staffing study (experience study) is planned for fall 2027. ERS Executive Director Patrick McClain indicated they will wait for data before eliminating positions.
• Alderman Coggs also noted the ERS leases office space at $460,000/year and suggested potential savings if space in City Hall becomes available. The eighth floor renovation is not imminent.
• Alderman Spiker inquired about combined city pension contributions (ERS+WRS) for future projections and the impact of salary increases on pension costs. Alderwoman Dimitrijevic asked for formal actuarial analysis before future labor contracts that affect pension contributions.

Health Department

• The proposed 2027 Health Department budget is 1.5% higher than 2026. Several positions are listed as unfunded to allow flexibility. Revenues are expected to decrease due to challenges with the new electronic health record (Epic) system.
• Doula Program: $300,000 is budgeted in 2027, plus anticipated carryover from 2026 (none spent). The RFP was delayed because of insurance requirements; the city is now contracting with groups rather than individual doulas. Alderwoman Coggs expressed disappointment that no services were provided in 2026, but Commissioner Totoraitis affirmed the program will continue and is working with the state on credentialing. Alderwoman Moore requested clearer presentation of carryover in future budgets.
• Immunizations: The department will stop purchasing private stock for COVID and flu vaccines ($400,000/year). Uninsured and underinsured individuals can still receive vaccines through VFC/VFA programs. The department continues to offer immunization clinics for MPS exclusion weeks.
• Lead Abatement: The 2027 budget includes $5.2 million; the active balance across grants is $10 million. A new HUD grant (four-year) was awarded because of ARPA success. Voluntary home registrations total 22 licensed properties. Alderwoman Coggs requested detailed information on home registrations.
• Health Clinics: Staffing is at 84-85% (short 2 nurses). Hours are reduced but patient volumes have increased. A contract with Planned Parenthood will provide two nursing staff. Alderwoman Dimitrijevic requested data on clients served and MPS schools served with lead abatement.
• Data Protection: Commissioner Totoraitis assured that the city's Epic agreement is governed by HIPAA, with strong protections for patient data.
• MPS Collaboration: Lead abatement in MPS schools (43 million, 7 million square feet) is complete. The department conducts mobile lead screening clinics (1,500 children tested in 18 schools). The relationship with MPS continues for ongoing maintenance and inspections. The department also works with families of children in non-MPS schools.
• Opioid Program: The community re-granting RFP will be released soon; neighborhood nursing teams are fully staffed in Districts 1 and 2. Annual reporting is planned.

Key Outcomes

• Communication 260001 (2027 budget) was NOT ACTED ON. A motion by Alderman Moore to hold the file to the call of the chair PREVAILED (5-0).
• Directives and information requests were made for: data on deferred compensation financial wellness participation (Ald. Moore), voluntary home lead registrations details (Ald. Coggs), and data on health clinic clients and MPS lead abatement facilities (Ald. Burgelis).