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HomeMy WebLinkAbout2.1 MinutesV�vl� Meeting Fiscal Impact Dollar Amount Budget Source Category Type Information ATTACHMENTS: COW FC April 13 2021.pdf Board/FinanceJoint Village • April 13, 2021 May 4, 2021 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - I_1» Z�1V_1 ��7 � u 11► 11� � �. Minutes 1 COMMITTEE OF THE WHOLE Joint Village Board/Finance Commission Workshop - Village Hall, 50 S. Emerson Street. Mount Prospect, IL Tuesday, April 13, 2021 6:00 p.m. The following message appeared on the meeting agenda: Return to in-person meetings: We are happy to announce the return of in-person meetings for all our Boards and Commissions. Although it may look a bit different than what we remember, we are committed to conducting a safe and productive meeting for all. Members of the public who wish to speak under Citizens to be Heard or on an agenda item may join us live at Village Hall. We'll check your temperature upon arrival and masks or face coverings will be required during the length of your visit. Physical distancing protocols will also be enforced. If we reach the capacity limit for the Boardroom, you may be asked to wait in the Farley Community Room or outside the boardroom. If you wish to address the Board in-person on April 13, 2021, please notify us by emailing kagoranos@mountprospect.org by 3:00 p.m. on April 13th so we may plan accordingly while keeping everyone safe. Please include your name and address in the email along with your intent to speak under Citizens to be Heard or on the discussion item. This will help us plan the flow of the meeting. To be respectful of everyone's opportunity to participate, your chance to speak may be limited in time by the Chair of the meeting (Mayor) depending on the number of participants. We also ask that you limit attendance to only those who wish to speak before the Board. The Board has always recognized the need to accommodate those with disabilities. Any individual who would like to attend this meeting but because of a disability or who needs some accommodation to participate will be able to address the board remotely. The same advance notice detailed above is required. You will then be provided with a communications link. Those who are unable to join us live may submit comments or questions to vmo@mountprospect.org. Comments received in this manner will be summarized by the Mayor at the appropriate time during the meeting. As always, you may also join us via livestream or view the meeting on Comcast or WOW channel 17. 1. CALL TO ORDER The meeting was called to order at 6:04 p.m. by Mayor Arlene Juracek in the Boardroom at Village Hall, 50 S. Emerson Street in Mount Prospect. Members of the Village Board present upon roll call by the Village Clerk: Arlene Juracek, Colleen Saccotelli, Eleni Hatzis, Michael Zadel, Paul Hoefert, and William Grossi Richard Rogers arrived at 6:27 p.m. Members of the Finance Commission present upon roll call by the Village Clerk: Trisha Chokshi, Yulia Bjekic, Ken Arndt, Vince Grochocinksi, and Don Ocwieja Absent: Pam Bazan Thomas Pekras arrived at 6:52 p.m. 2. APPROVAL OF MINUTES There were no minutes to approve. 2 3. CITIZENS TO BE HEARD There were no citizens to be heard. 4. DISCUSSION ITEMS 4.1 2021 FIRST QUARTER REVIEW - JOINT WORKSHOP WITH VILLAGE BOARD AND FINANCE COMMISSION Mayor Juracek announced item 4.2 on the agenda is tabled to a meeting at a future date. Director of Finance Amit Thakkar provided an outline of the evening's presentation of the Village's first quarter review including a recap of fiscal year 2020. Mr. Thakkar stated 2020 was an exceptional year that presented exceptional challenges. Village leadership provided clear direction and staff responded with exceptional and productive teamwork. Mr. Thakkar identified several challenges ignited by the COVID-19 pandemic that led to revenue shortfalls, market uncertainty and additional expenditures (PPEs). Village leadership responded with adaptive teams who provided excellent customer service, Board approval of a 0% property tax levy and procurement of important grant opportunities. Mr. Thakkar credited the Village's strong local economy, healthy fiscal position, certain outperforming revenues and strong pension fund performance for a healthy 2020 fiscal outcome. Mr. Thakkar reviewed the COVID-19 financial impact: Gross Revenue Shortfall - $5,351,226 Offset from Outperforming Revenues - $5,381,994 Net Revenue - $30,768 Mr. Thakkar stated sales tax accounts for 26.1 percent of the total COVID-19 revenue shortfall. The hotel/motel tax is the most impacted revenue. The 2020 budget amount for hotel/motel tax was $493,000; only $134,352 was collected. Mr. Thakkar provided information regarding the General Fund Revenue impact: 2020 budget - $58,666,426 2020 actual - $58,677,043 • Gross shortfall - $3,366,712 - includes shortfall in State sales tax, home rule sales tax, hotel/motel tax, parking fees Outperformance - $3,377,328 - includes State use tax (online sales throughout the State) • State income tax, grants (CARES Act and other Cook County grants), ambulance fees and other revenue sources Net result - $10,617 3 Mr. Thakkar stated the initial COVID-19 impact forecast for the year 2021 was $1.2 million. Mr. Thakkar stated staff is anticipating a return to normalcy by mid -2021. Mr. Thakkar provided the following in response to questions from the Board: • Shortfalls in revenues and revenue items which outperformed are derived from different funds identified by separate line items. • Budget expenditure figures are based on approved amendments to the budget; revenue amendments are rarely imposed Trustee Rogers arrived at 6:27 p.m. Mr. Thakkar stated that the Village's strong revenue base and contingency planning allowing deferment and reallocation of funds positioned the Village to end the year stronger fiscally than anticipated. Mr. Thakkar added that December 2020's sales tax collections were historically high. Revenues recognized for 2020: Original budget - $116,255,466 Amended budget - $118,325,406 Actual budget - $117,552,882 Mr. Thakkar stated that some of the revenues budgeted for 2020 are delayed by the State of Illinois due to timing issuance of the Rebuild Illinois bonds. Expenditures recognized for 2020: Original budget - $135,074,465 Amended budget - $150,624,508 Actual budget - $139,607,069 Mr. Thakkar stated due to cancellation of several Village sponsored programs and events, the Village saved $423,498 in 2020. Additional significant savings came from reduced overtime costs, deferred capital improvement projects and savings in supplies cost due to lower fuel prices and mild winter weather. General Fund - 2020 The original budget included a $3.4 million transfer from the Fund Balance to support Phase I of the Levee 37 Burning Bush project. Due to Government Accounting Standard Board accounting requirements, $3.4 million from the Fund Balance was reserved for Levee 37. Phase I of the project is completed and the $3.4 million was not needed because funding became available from other sources. The reservation of $3.4 million will be reversed and added to the unassigned Fund Balance. Mr. Thakkar added the reduction of General Fund expenditures decreased the planned deficit reduction from $3.4 million to $515,775 Mr. Thakkar stated that two major projects were completed in 2020: the construction of the Police Headquarters and Fire Headquarters were completed on-time and under - budget by $343,929. Mr. Thakkar provided details regarding the Police and Fire Headquarter project reconciliation. In response to a question from the Board, Mr. Thakkar stated the final numbers included repairs needed during the construction of the Fire Headquarters. Mr. Thakkar stated proceeds from the sale of the former police/fire headquarters will go to the TIF fund. 4 Mr. Thakkar discussed the Police and Fire Pension Fund financials. The market recovered from the crash in March and April and both funds have performed above their benchmarks. The Police Pension Fund had an investment income of $10.2 million. The Fire Pension Fund earned investment income of $11.6 million. Mr. Thakkar stated pending actuarial reports are expected to show a funding percentage of approximately 70% for both funds. Mr. Thakkar discussed the 2021 First Quarter Revenues. The total recognized revenues of $22.8 million represents 16.6% of the annual budgeted revenue. At the same time last year, the total collected was $23.1 million; a difference of $282,906. Mr. Thakkar displayed a table that summarized the data in more detail. The 2021 first quarter expenditures were discussed. The first quarter expenditures totaled $18.7 million or 13.6% of the annual budget. Mr. Thakkar provided details regarding the first quarter expenditures and how the amount compares to 2020 for the same period. Mr. Thakkar discussed the Federal American Rescue Plan, passed on March 11, 2021. The plan provides direct relief funds to all towns with a population of 50,000 or more. Mr. Thakkar stated the Village is expected to receive $6.55 million in federal relief funds and these funds must be used by December 31, 2024. The funds will be distributed in two equal installments. The first installment is expected by May 10, 2021 and the second installment will be granted after twelve months of the first installment. The plan is specific regarding the use of funds and can only be used for certain items including assistance to households, small businesses, nonprofits, and impacted industries including hospitality, travel and tourism. Funds can also be used to cover premium pay for essential works up to $13.00 per hour with an annual cap of $25.00, to make investments in water, sewer or broadband infrastructure and to cover lost revenue in providing services. Funds, however, cannot be used to cover lost revenues if the losses were due to a tax cut or to cover pension shortfalls. Mr. Thakkar concluded by stating the Village has a strong revenue base and a healthy local economy that has allowed the Village to sustain the impacts of COVID-19. Mr. Thakkar stated he is confident the Village can return to a sense of normalcy by mid -2021. Mayor Juracek provided closing remarks. On behalf of the Board, Mayor Juracek expressed gratitude to the Finance Team and to the leadership team for maintaining a stable financial environment and strong local economy the the midst of a global pandemic. Mr. Thakkar thanked the Board for their support. 4.2 Discussion - Intergovernmental Agreement with Elk Grove Rural Fire Protection District This discussion was tabled to a meeting in the future. 5. VILLAGE MANAGERS REPORT Village Manager Michael Cassady thanked Mr. Thakkar and Assistant to the Finance Director Jenny Fitzgerald for the Village's solid financial footing. 5 Mr. Cassady announced the Finance team once again has been recognized by the Government Finance Officers Association (GFOA) for excellence in financial reporting. Mr. Cassady also thanked Fire Chief Brian Lambel, Police Chief John Koziol Deputy Director of Building and Inspections Mark Rysavy and their teams for contributing to the successful relocation of the Police and Fire Headquarters project, completed on time and within budget. 6. ANY OTHER BUSINESS No additional business was presented or discussed. 7. ADJOURNMENT There being no further business to discuss, Mayor Juracek asked for a motion to adjourn. Trustee Zadel, seconded by Trustee Rogers, moved to adjourn the meeting. By unanimous voice vote, the April 13, 2021 meeting adjourned at 7:14 p.m. Respectfully submitted, Karen M. Agoranos Village Clerk 6