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HomeMy WebLinkAbout08/22/2019 FC Minutes FINANCE COMMISSION It momtPR)SPL MINUTES August 22, 2019 Village Hall 50 S. Emerson, Mount Prospect, IL 60056 Village Board Room I. Call to Order Meeting called to order at 7:00 p.m. Members present: Pam Bazan, Trisha Chokshi, Vince Grochocinski and Thomas Pekras. II. Approval of Minutes a. Commissioner Grochocinski, seconded by Commissioner Pekras, moved to approve the minutes of the Finance Commission Meeting held on July 25, 2019. Vice Chair called a voice vote. Minutes were approved unanimously. III. Citizens to be Heard: None. IV. Finance Commission Discussion — Preliminary CIP 2020-2024 Director of Finance Amit Thakkar stated the purpose of this meeting is to facilitate a post Community Investment Program (CIP) discussion. Commission Comments: • Most comments at prior meetings were regarding deep well rehabilitation, which lead into discussing a proposal for a water supply interconnection with Northwest Water Commission. • The Northwest Water Commission interconnect still needs to be vetted out and meanwhile there are the deep wells that would need to be rehabbed. • The Village needs a backup water supply system. • The Village Board has not yet had the policy discussion on keeping or abandoning the deep wells. • The Finance Commission reviews the projects from finance point of view and recommends if it is fiscally responsible to fund the project or recommends one source of funds over another for certain projects. Also, recommends funding the projects based on its impact on the community and based on the importance of the project. Staff provided the following in response to comments from the Finance Commission: • There are many moving parts to the deep well and Northwest Water Commission interconnect discussion. It would be a multi-year multi-phased project, and the Village would need a backup system during that period. There are also fire flow requirements. • Two wells rehabilitations are in the CIP for 2020. One paid by House Bill 62 and the other from the Village's Capital Improvement Fund. • Staff reviews projects to see if makes dollar and sense. However, some projects Finance Commission Page 1 of 3 08/22/19 we need to do. • Property tax is a Finance Commission item and alternative revenue sources is in the Commission's scope. Sometimes the way government works is that finance is only one aspect of a project. • CIP project details are prepared with best information available at that time. Director of Finance Amit Thakkar asked what additional information staff might provide to the Commission to facilitate future CIP discussions: Commission Comments: • Insight on the how projects are prioritized or criteria used in ranking projects might help. • Have financing more complete when presenting the CIP. • Would like to analyze funding gaps in streets, flooding, and CIP funds. Eliminating the vehicle sticker discussion brought to light the need for street funding. Staff provided the following in response to comments from the Finance Commission: • Staff consolidated the budget cycle last year to present the CIP and budget together. Resulting feedback was it too much information at one time. This year staff separated the CIP and budget presentations, but staff cannot put CIP funding together until the operating budget is set. • Staff needs to know capital outlay and operating budgets to allocate funding and balance the budget. • An issue with capital funding is revenue is not keeping up with expenses. Costs have increased a lot, from what it would cost us to resurface the road five years ago vs today. • Water and sewer enterprise funds try to cover cost of operation. However, it is getting more costly for all municipalities to provide water. • Fund balance compliance requirements for major funds, but not the assets seizure fund and we may use any funds available. The Village Board could also take action on level of fund balance. Public Comment Kathy Schutz 202 N William Ms. Schutz asked about the Village considering additional bond issues and if staff looks at how much the Village is able to borrow and look forward with available funding. Staff provided the following in response to comments from the public: • Before a bond issue, staff establishes how it is used and how to pay it back. This includes an assessment for the appetite on what the Village can pay back. • The other bonds the Village are anticipating to issue are for enterprise funds and those funds support those debt service. • If the Village does not have the available funding sources, then we do not do the project or push it to future years. V. New Business None. Finance Commission Page 2 of 3 08/22/19 VI. Any Other Business None VII. Chairman's Report None VIII. Finance Director's Report None IX. Next Meeting: Regular Meeting - Thursday, September 26, 2019 There was a general discussion on upcoming meetings for the budget and a consensus to cancel the October 17 Finance Commission meeting. All departments will present their budgets at the October 10 Finance Commission meeting. X. Adjournment: Motion made by Commissioner Bazan seconded by Commissioner Pekras. The meeting adjourned at 7:55 pm. Alexander Bertolucci Management Analyst Finance Commission Page 3 of 3 08/22/19