Loading...
HomeMy WebLinkAbout03/25/2021 FC MinutesFINANCE COMMISSION MEETING MINUTES Thursday, March 25, 2021 Mount Prospect Police Headquarters 911 E. Kensington Rd., Mount Prospect, IL I. Call to Order Meeting called to order at 7:00 p.m. Commission members present: Kenneth Arndt, Pam Bazan, Trisha Chokshi, Vince Grochocinski, and Tom Pekras. Commission members absent: Yulia Bjekic Staff present: Director of Finance Amit Thakkar, Assistant to the Director of Finance Jennifer Fitzgerald and Assistant to the Village Manager Alexander Bertolucci. II. Approval of Minutes a. Commissioner Pekras, seconded by Commissioner Grochocinski moved to approve the minutes of the Finance Commission regular meeting of February 25, 2021. Chair Chokshi called a voice vote. Motion passed unanimously. III. Citizens to be Heard None. IV. Old Business None. V. New Business a) IRMA Risk Management Director of Finance Amit Thakkar reviewed the Village's membership in an intergovernmental High -Level Excess Liability Insurance Pool (H.E.L.P.). H.E.L.P will dissolve in a few years and at that time and the Village shall receive its share of remaining funds from the pool. The Village joined the Intergovernmental Risk Management Agency (IRMA) in 2018. The nearly 70 -member IRMA risk pool includes insurance for assets, comprehensive liability coverage, and claim management and litigation. Mr. Thakkar explained the Village lowered its deductible to $50,000 based on claims experience and how this change could provide savings. He introduced the concept of a property tax levy for liability insurance as many municipalities already have such a levy. Mr. Thakkar stated the Village experienced a couple good years of investment returns for the police and fire pensions. Staff is expecting a new funding report in the upcoming weeks and it will have updated funding ratios. Once the Village police and fire pensions are 100% funded, the annual cost no longer includes amortization of future costs and is only the current costs. Staff provided the following in response to questions from the Finance Commission: • H.E.L.P is an entity that several area towns created, which is now in the Finance Commission Page 1 of 3 3/25/2021 process of dissolving. • The Village is receiving about one fraudulent unemployment claim per week. • IRMA provides support to employees for avoiding injuries and recovering after they occur; every Village department has a safety committee to review injuries. b) Financial Updates Mr. Thakkar reviewed 2020 revenues. He stated the Village had historically high sales tax collection in December 2020, which helped to offset losses overall. The Village collected more in income tax in 2020 than in 2019; however, the state announced a 10% reduction for municipalities Local Government Distributive Fund allocations starting in July. He reviewed the Village's cash and investments, and stated staff is working on a more objective approach for secure short-term investments. Mr. Thakkar stated staff projected a $1.5 million revenue loss due to COVID-19; however, actual revenue loss is about $1.1 million. The General Fund seems to be ending 2020 with a similar fund balance as the end of 2019. Final numbers are still under review. He explained staff met with bond advisors recently as the budget includes a $10 million bond issuance in 2021 per the Water Rate Study. At this time, staff is asking to postpone the $10 million bond issuance for smaller bond issuances. Discussion will start at first quarter review with a Finance Commission recommendation by the second quarter review. Staff provided the following in response to questions from the Finance Commission: • The Village is expecting to receive $6.554 million from the American Rescue Plan Act. Staff is working on a tentative plan for these funds. The amount was determined using Community Development Block Grant allocations. There are four uses for these funds: 1) replace lost revenue 2) water, sewer and broadband projects 3) economic recovery program and 4) pay for overtime up to $13/hour. • The Village's property tax levy is an amount. The Village will receive the same amount regardless of assessed valuations. Reducing or changing assessed valuations may shift the tax burden from one group to another (i.e. residential to commercial properties). • If local sales tax is applied to online purchases, it could generate $2.2 million. • Noticeable relationship between federal stimulus payments and sales tax collection. c) Revised Date for Joint Workshop — April 13, 2021 Mr. Thakkar stated the Joint First Quarter Review Workshop with the Village Board is on April 13. An agenda packet will be available the Friday before the meeting at the latest. Mr. Thakkar responded to a question from Commissioner Grochocinski regarding the status of the state's consolidation of Police and Fire pensions. VI. Any Other Business Assistant to the Director of Finance Jennifer Fitzgerald shared ribbon cutting event information for the new payment kiosk outside of Village Hall. Finance Commission Page 2 of 3 3/25/2021 VII. Chairman's Report None. VIII. Finance Director's Report None. XI. Next Meeting: Joint Workshop —April 13, 2021 IX. Adjournment: Motion by Commissioner Pekras, seconded by Commissioner Arndt, to adjourn the meeting. Chair Chokshi called a voice vote. Motion Carried unanimously. The meeting adjourned at 8:04 pm. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 3 of 3 3/25/2021