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HomeMy WebLinkAboutFC Minutes 04/09/2018h�w�r-rat &'ryx'z FINANCE COMMITTEE Minutes of the Special Meeting April 9, 2018 a/ Village Hall — 3rd Floor Executive Conference Room 50 South Emerson CALL TO ORDER — ROLL CALL The meeting was called to order at 6:05 p.m. by Chairman John Kellerhals. Commissioners present included Pam Bazan, Trisha Chokshi, Vince Grochocinski, Don Ocwieja, Thomas Pekras and Mary Rath. Staff present included Village Manager Michael Cassady, Finance Director David Erb and Administrative Analyst Alexander Bertolucci. APPROVAL • 111111. CITIZENS TO BE HEARD None. IV. OLD BUSINESS a. Public Sak! ��u Bron Finance Director David Erb provided a recap of the Finance Commission's March 22 meeting and stated the purpose of this special meeting is for the Commission to create a recommendation that would be presented at the April 17, 2018 Village Board meeting. Village Manager Michael Cassady provided an overview of the Public Safety Building space needs solution to date. He explained that while the focus was on a police headquarters, a solution for Fire Station 13 was the next step. The recent Fire Station Location Study completed by the Illinois Fire Chiefs Association recommends moving Station 13 north to improve response times. He shared the opportunity for adaptive reuse of 111 E Rand Rd for a new Fire Station 13 and Headquarters. Mr. Cassady also explained that staff will be exploring redevelopment opportunities for the Public Safety Building to bring in more residents to support businesses, generate activity and increment within the tax increment financing (TIF) district. He stated the Police and Fires rainratinn nrnraccac ares aiinninn tha Villnna is n irrantiv kaaninn nar.P with tha • The May 2017 bond issue ($12.1 million) is to fund water and sewer projects ($5 million) outlined in the Water and Sewer Rate Study and the TIF portion is $7.1 million. • TIF expenses would come from the TIF Fund and not the General Fund. • All debt is fix rate debt. • Construction costs include a contingency for rehabilitation if building repairs are required. • No anticipated municipal facility needs beyond a Police Headquarters and Fire Station 13/Headquarters. Mr. Erb reviewed several analyses from PMA Securities that were presented to the Village Board on April 3, 2018. This included the Proforma for 2018A Bonds, Police & Fire Relocation Financing Proforma and Summary of Multi -Year Financing Plan (with credit impact). The following responses from staff were provided to questions from the Finance Commission: • Sales tax and other revenues support operations and not the tax levy. • Mount Prospect is a home rule community and its debt is not capped. If it were a non -home rule community the allowed debt maximum would be $150 million. All the Village's debt would total $111 million at its maximum in calendar year 2019. • Water and Sewer debt would total $28 million. • Further annexations include the remaining parcels on Oakton St. north of the highway. • Review capitalized interest payments on the October 2018 bond issue and possibly reducing capitalized interest through the use of reserves. • The bonds issued for the construction of Village Hall included capitalized interest. • Litigation with School District 214 is ongoing. General comments from the Finance Commission included the following items: • Supports the recommendation of the Village staff. • The financing plan makes the projects feasible. • Staff has addressed concerns. • More concerned about takino funds awav from the Canital Imnrovement Plan VI. ANY OTHER BUSINESS None. Yid x x * I - 1 I I IIIIIIIEURVIV 1541FREW Wrsl&a igiUs IX, NEXT MEETING Chairman Kellerhals entertained a motion to cancel the Thursday, April 26 meeting. Motion made by Commissioner Chokshi seconded by Commissioner Bazan. Chairman Kellerhals called a voice vote and the action was approved unanimously. X. ADJOURNMENT Motion made by Commissioner Chokshi seconded by Commissioner Bazan. The meeting adjourned at 7:59 p.m. Alexander Bertolucci Administrative Analyst