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HomeMy WebLinkAbout09/24/2020 FC MinutesFINANCE COMMISSION MEETING M(A,"ti�..1-ter MINUTES Thursday, September 24, 2020 Police Department Headquarters 911 E. Kensington Road, Mount Prospect, IL 60056 I. Call to Order Meeting called to order at 7:21 p.m. Commission members present: Kenneth Arndt, Yulia Bjekic, Trisha Chokshi, Vince Grochocinski, Don Ocwieja, 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 Pekras moved to approve the minutes of the Finance Commission regular meeting of June 25, 2020. Chairman Chokshi called a voice vote. Motion Carried. III. Citizens to be Heard None. IV. Old Business a) CIP Review Director of Finance Amit Thakkar provided an update on the Community Investment Plan (CIP) item - Body Worn Police Cameras. Originally budgeted in the 2021 CIP, the purchase of body cameras were moved to the 2020 budget, reducing the 2021 CIP by $185,000. There are sufficient funds in the 2020 budget for this purchase and the Village Board approved the purchase at the September 15 Village Board meeting. Staff provided the following in response to comments from the Finance Commission: • The Police Department already has an employee assigned to review patrol car video footage. The first year cost of video retention is included in the purchase price. • The Village would be eligible for a grant to offset the purchase cost after we purchase the body cameras. V. New Business a. Operating Budget Update Mr. Thakkar stated that staff just finished the proposed 2021 operating budget and it was prepared with zero percent property tax increase. The debt service and pension levies are fixed, so a zero percent increase means the Village needs to reduce the Fire and Police Protection levy by $19.4 million. He addressed COVID-19 revenue losses and how departments were asked to be more efficient and innovative for the 2021 budget year to ensure we do not compromise current service or staffing levels. He explained how employee count reduced by two from reorganizations in the finance Finance Commission Page 1 of 3 09/24/2020 and community development departments. He then reviewed the budget presentation schedule. In response to a question from the Finance Commission, Mr. Thakkar shared that staff is proposing a zero percent property tax increase to not further burden residents and businesses during the COVID-19 pandemic. Mr. Thakkar provided an overview of the Mount Prospect Public Library's 2002 bond issuance and the corresponding intergovernmental agreement with the Village. The repayment scheduled had a balloon payment for 2021. Staff is proposing to amend the intergovernmental agreement to extend the repayment out one year. This will allow the 2022 debt service payment to be paid by a 2021 levy increase, instead of levying both the 2021 and 2022 debt service payments on the 2020 levy. Without this amendment, the Library's debt service levy would increase 13%. Staff wanted to make the Finance Commission aware this amendment. b. COVID-19 Revenue Loss Update Mr. Thakkar provided a COVID-19 revenue loss update. Staff projected a $5.6 million loss at the end of April, which was revised to $4.9 million by the end of July. Sales tax revenues are encouraging. Property tax collection is lagging by 6%, and we are hoping the lag will catchup in October. The Village extended the vehicle sticker deadline, so revenue is lagging by $100,000. Income tax revenue projections were held constant going into 2020, so impact from COVID-19 is not as significant if as we projected growth. Motel/Hotel and Food and Beverage taxes are recovering slowly. Real estate transfer tax is experiencing less revenue, more transactions with less in value, but it is on track to meet budget projections. Mr. Thakkar summarized the update; overall, some sectors are doing well and they are compensating for loss from other areas. Expecting there will be some loss when this all settles out. c. Other Updates Mr. Thakkar provided an update on timing of the monthly reports. General discussion from Finance Commission members included the following items: • The Village's financial outlook if another shelter -in-place order is issued by the state. • Recreational cannabis advisory referendum, the impact of potential recreational cannabis tax revenue and loss of medical cannabis tax revenue. • Cook County COVID-19 CARES relief — The Coronavirus Aid, Relief, and Economic Security Act and federal aid (FEMA reimbursement & grants). VI. Any Other Business None. VII. Chairman's Report None. Finance Commission Page 2 of 3 09/24/2020 VIII. Finance Director's Report None. IX. Next Meeting: Joint Operating Budget Workshop — October 13, 2020 X. Adjournment: Motion by Commissioner Arndt, seconded by Commissioner Bjekic to adjourn the meeting. Chair Chokshi called a voice vote. Motion Carried. The meeting adjourned at 8:14 pm. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 3 of 3 09/24/2020