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HomeMy WebLinkAbout10/22/2020 FC MinutesFINANCE COMMISSION MEETING M(Ay�l1 P177 MINUTES Thursday, October 22, 2020 Police Department Headquarters 911 E. Kensington Road, Mount Prospect, IL 60056 I. Call to Order Meeting called to order at 7:00 p.m. Commission members present: Kenneth Arndt, Pam Bazan, Yulia Bjekic, Trisha Chokshi, Vince Grochocinski and Tom Pekras. 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 Grochocinski, seconded by Commissioner Arndt moved to approve the minutes of the Finance Commission regular meeting of September 24, 2020. Chair Chokshi called a voice vote. Motion Passed unanimously. III. Citizens to be Heard None. IV. Old Business a) Operating Budget - 2021 Director of Finance Amit Thakkar provided additional information in response to questions asked during the Joint Village Board and Finance Commission Special Workshop meeting on October 13, 2020. He also provided an overview of a few changes to the budget. • $2,500 from the Sister Cities Commission budget was removed from Public Representation. Mr. Thakkar shared a total cost of service report, which includes assumptions for home value, vehicles owned, spending, and more. On average, the total cost for services for 2020 is $3,089 per household, which will increase by $102 for 2021. • 2019 overtime for Police, Fire and Public Works totaled $2.3 million. The 2020 budget estimated $2.4 million in overtime, but staff is now forecasting $1.7 million due to COVID-19 related cancelled events. Year to date is $1.3 million. The 2021 budget for overtime is $2.3 million for Police, Fire and Public Works. • Property tax collection was 98% last year at this time and 93% this year, which is $1.4 million less than last year. One of several factors playing into this is the August due date being delayed to October. • Mr. Thakkar presented the 2020 Property Tax Distribution "Dollar Bill". He reviewed the 2017 Water and Sewer Rate Study and its outlined rate increases to achieve a 130 years water main replacement cycle. • The refuse rate held flat for five years (2016 — 2020). • Solid Waste Agency of Northern Cook County tipping fees change based on the agency's budget, which influences the Village's refuse program costs. In Finance Commission Page 1 of 3 10/22/2020 addition, the Village has an unlimited yard waste program (no yard waste stickers) and our own leaf collection program. The property owner receives the refuse bill for multi -family units. Reviewed savings from reducing two positions through the re -organization of two departments. In addition, staff continues to look at cost vs. benefit of particular programs to gain further efficiencies. Staff provided the following in response to comments from the Finance Commission: • There is one volumetric rate for water and sewer for residential and commercial properties. Rates are comparable to other Northwest Suburban Joint Action Water Agency (NSJAWA) communities. • The water rate is based on administrative fees, cost of water from Chicago, fixed infrastructure costs, and debt service. • The Water and Sewer Fund is an enterprise fund. The Refuse Fund is currently a special revenue fund and the revenues are restricted for refuse uses only. Staff will be proposing to change the Refuse Fund to an enterprise fund since revenue sources are fees charged to users. • A 2% property tax increase for an average home would be $17 more. • The refuse rate had planned increases since 2017; however, rates did not increase because there was available fund balance to abate the increase. • The refuse rate increase would bring the rate in line with the actual cost of the service. • It would not make sense to transfer funds to support the Refuse Fund (special services fund) unless it is in complete distress. Without the rate increase, there would be a gap of about $300,000 or more and the fund balance would not meet the fund balance policy. • In 2015-2016, the corporate category of the property tax levy changed to police and fire protection. Improved transparency regarding use of funds since the corporate levy was for police and fire protection. • The pension and debt service levies are fixed. Debt service is abated with general fund — extra revenue sources. • Explained triennial assessment impact to resident property taxes. • 70% of utility bill payments are submitted by check. Mr. Thakkar explained the customer services and operational benefits of the recently approved kiosk payment system. • Reviewed each departments overtime costs. b) Recommendation to the Village Board Motion to adopt the budget as presented with a recommendation for any future user charge increases should be in line with the annual increase in the program costs. Motion by Commissioner Bjekic, second by Commissioner Arndt. Yea: Kenneth Arndt, Pam Bazan, Yulia Bjekic, Trisha Chokshi, Vince Grochocinski and Tom Pekras. Motion Passed V. New Business None. Finance Commission Page 2 of 3 10/22/2020 VI. Any Other Business None. VII. Chairman's Report None. VIII. Finance Director's Report a) Financial Updates Director of Finance Amit Thakkar provided an overview the Monthly Financial Report for September 2020. He reviewed revenues collected compared to 2019, 2020 expenses after the revised budget, and a fund balance analysis. COVID-19 revenue losses are less than projected. There was a general discussion regarding funding and grant opportunities for the Aspen Trails Park Stormwater Project. IX. Next Meeting: Commissioner Bazan, seconded by Commissioner Grochocinski moved to approve to cancel the regular meetings of the Finance Commission scheduled for November and December. Chair Chokshi called a voice vote. Motion Passed unanimously. X. Adjournment: Motion by Commissioner Arndt, seconded by Commissioner Pekras, to adjourn the meeting. Chair Chokshi called a voice vote. Motion Carried unanimously. The meeting adjourned at 8:48 pm. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 3 of 3 10/22/2020