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Home My WebLink About05/12/2020 COW Minutes1. 2. 0 4. IMMI4191fIWfIWWVMIXMWIIMIpININNINNIVMWIIYIYIIIWIIIIIIIIIW.YWWWIWWWI COMMITTEE OF THE WHOLE MINUTES — May 12, 2020 — Via video teleconference GoToMeeting During the meeting, residents were provided an email and phone number to participate in the live meeting. Residents were also permitted to submit questions or comments prior to the meeting. ROLL CALL— CALL TO ORDER The meeting was called to order at 7:02 p.m. via remote video conference by Mayor Arlene Juracek. Upon roll call vote by the Village Clerk, trustees present via video conference included William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli and Michael Zadel. APPROVAL OF MINUTES Trustee Grossi, seconded by Trustee Saccotelli moved to approve the minutes of the Committee of the Whole meeting of March 10, 2020 The minutes were approved by unanimous voice vote. CITIZENS TO BE HEARD Mayor Juracek stated two public comments were received via email prior to the meeting. Mayor Juracek read the comments aloud. Linda Sheridan • Asked Mount Prospect to consider allowing restaurants to set up tables outdoors and/or adjacent parking lots, where possible, so they may offer outdoor dining while adhering to the governor's order. Mayor Juracek agreed this is a good idea when we enter Phase 4; unfortunately this does not comport with Phase 2 or Phase 3 criteria. Linda Mosca • Asked the Village to provide masks/coverings to residents. Mayor Juracek responded, stating due to supply constraints, the Village is unable to provide residents with masks at this time. • Requested information regarding the location of Coronavirus testing sites in our area. Mayor Juracek directed residents to the Village website's COVID information page for the most current information. Mayor added that a new testing facility is scheduled to open in Rolling Meadows next week. • Concerned about the speed of traffic on Central between Emerson and Northwest Highway. Mayor Juracek noted Chief Koziol will implement selective enforcement of this area and install temporary radar trailers. DISCUSSION ITEMS 4.12020 First Quarter Financial Review Director of Finance Amit Thakkar presented the first quarter financial review for the Village of Mount Prospect. The report includes the 2019 Unaudited Financial results, Fund and Committee of the Whole Page 1 of 4 05/12/20 2 Cash Balance Analysis, Police and Fire Actuarial Reports data, Q-1 Revenue and Expenditure Analysis, COVID-19 Financial Impact, Contingency Plan, Collateralization Changes for the Village Funds as well as proposed changes to the Village Fund Balance Policy. Mr. Thakkar's presentation included a summary for each of these items. 2019 Unaudited Financial Results • FY 2019 was a strong year for Revenue and Investment earnings • FY 2019 revenues outperformed the Budget due mostly to higher investment earnings for Police and Fire Pension Funds: o General Fund - $16.6 million o Sales Tax - $2.2 million o Income Tax - $515,000 o Use Tax - $300,000 • Unaudited expenditures for FY 2019 totaled $144.8 million; General Fund expenses were 98.3% of the approved budget Account Fund Balance • Balance at the end of 2019 was $23 million • Accounting Fund Balance is $36.6 of annual budget; the Spendable Fund Balance is 25.7% of the annual budget. Mr. Thakkar responded to questions from the Board. First Quarter Revenues and Expenditures • Q1-2020 revenues totaled at $23.1 million. The Q1-2020 revenues are $214,214 or 0.92% less compared to Q1-2019. Reduction in property tax collection, as well as reduced investment earnings and License & Permit Fees, are contributing to the reduction in revenue • Q1-2020 expenditures are totaled at $34.3 million. The Q1-2020 expenditures are $12.9 million higher compared to Q1-2019. An increase in capital project spending is the main reason for the higher expenses. Capital project spending includes Police and Fire Headquarters as well as for the Maple Street Parking Deck Project, totaling $11.8 million. COVID-19 Financial Impact and Contingences • On track until the COVID-19 outbreak in mid-March; significant loss of revenue due to pandemic • Forecasts a revenue loss of $5.6 million; General Fund impact is estimated at $3.8 million • Staff devised a plan to postpone certain internal lease payments, programs and capital improvement items totaling $7.0 million. Staff will review programs and services provided by the Village; staff estimates a savings of $153,000 due to event cancellations. This number will like increase as more Village events are cancelled. Staffing levels will also be analyzed. Director of Public Works Sean Dorsey identified postponed and their related cost savings: • CI P General Fund projects including fall Klehm's Island landscape - $388,750. Committee of the Whole Page 2 of 4 the following projects that can be tree planting, new sidewalks and 05/12/20 V? 5. 6. • Water Fund reductions including the Deep Well Rehab and Fairview Lift station projects - $1, 295,000 • CIP Capital Improvement Fund Reductions for public building improvements - $1,136, 000. • CIP Street Improvement Fund Reductions including the Busse Road Improvement project - $500,000. • CIP Motor Fuel Tax Fund Reductions including the Pedestrian Signal Improvements Route 83 and Algonquin $125,000. Mr. Dorsey provided the following in response to questions from the Board: • Village has several "shovel -ready" projects, particularity the sidewalk project, that could qualify for the recently announced $25 million state grant fund program • Sidewalk project includes plans for new sidewalks where they don't currently exist • Awarded grant funds have not been received to date for Well 11 project; project will be completed at no cost to the Village once funds are received • Vehicle replacement program will not be substantially affected and is fully funded Board Comments: • Sidewalk project is a very important project that should be completed with or without grant funding Fund Balance Policy • The current Fund Balance Policy recommends a fund balance at 20 to 30 percent of the annual budget and aims to keep the fund balance at 25 percent of the annual budget. • Staff proposes to revise the fund balance to a 25 to 40 percent range with an aim at a 33 percent fund balance of the annual budget. • Staff also proposes transfers to Rainy Day/Stabilization Fund in case the fund balance crosses 40 percent threshold of the annual budget. Utilization of the Rainy Day/Stabilization Fund balance will be reserved for pension smoothing, maintaining core services and staffing level in the time distress, and for capital projects. • This fund balance policy change will be reviewed by the Finance Commission at their June meeting. Mr. Thakkar answered questions from the Board followed by a brief discussion. Mr. Thakkar concluded by stating the Village is in a strong Fund Balance as well as Cash Positions. Mr. Thakkar added the Village is positioned to withstand short-term revenue losses in FY 2020. Mr. Thakkar stated the Village is prepared to adjust long term planning and projects if the economy worsens. Mayor Juracek stated she looks forward to input from the Finance Commission and thanked Mr. Thakkar for his presentation and discussion. MANAGER'S REPORT None ANY OTHER BUSINESS Committee of the Whole Page 3 of 4 05/12/20 E! Trustee Saccotelli announced that today, May 12, is International Nurses' Day and expressed appreciation to all healthcare workers. Trustee Hatzis stated the railroad tracks at the intersection of Route 83 and Emerson are a great improvement and expressed appreciation for completion of this project. In response to a question from Trustee Hoefert, Mr. Dorsey stated the Family Bike Ride event has not been cancelled to date. Village Manager Michael Cassady stated the Special Events Commission will make a decision regarding this event in the next few weeks. Mayor Juracek cautioned residents who participate in drive-by birthday celebrations be mindful of social distancing protocols. 7. ADJOURNMENT The meeting adjourned at 8:46 p.m. by unanimous voice vote of the Village Board. Respectfully submitted, Karen Agoranos Village Clerk Committee of the Whole Page 4 of 4 05/12/20