HomeMy WebLinkAbout06/25/2020 FC MinutesFINANCE COMMISSION MEETING
MINUTES
Thursday, June 25, 2020
Online — via GoToMeeting
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, Don Ocwieja (Signed on at 7:23 p.m.), 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 Pekras, seconded by Commissioner Grochocinski moved to approve
the minutes of the Finance Commission regular meeting of May 28, 2020. Chairman
Chokshi called a voice vote.
Motion Carries.
III. Citizens to be Heard
No comments were submitted and no members of the public called into the meeting.
IV. Old Business
a) Recommendation to the Village Board (Fund Balance Policy Revision)
Director of Finance Amit Thakkar stated the draft recommendation includes the
pertinent points of discussion from the May 28 regular meeting regarding the Fund
Balance Policy. If the Finance Commission approves the written recommendation,
then staff would share it with the Village Board. A Fund Balance Policy discussion is
scheduled for the upcoming mid -year budget review joint workshop.
Motion by Commissioner Pekras, second by Commissioner Bjekic to adopt the Fund
Balance Policy Revision recommendation as written and presented.
Ayes: Tom Pekras, Yulia Bjekic, Vince Grochocinski, Pam Bazan, Kenneth Arndt,
Trisha Chokshi
Motion Carries.
V. New Business
a. Audit Update
Mr. Thakkar stated the audit was presented to and approved by the Audit Committee.
The Village received the highest mark in the independent auditor's report and he shared
the auditor's opinion. Then he provided an overview of the Comprehensive Annual
Financial Repot.
Commissioner Ocwieja joined the meeting at 7:23 p.m.
Finance Commission Page 1 of 2 06/25/2020
In addition, Mr. Thakkar reviewed new accounting standards GSAB 84 — Retiring
Assets and GSAB 87 — Leases.
Staff provided the following in response to comments from the Finance Commission:
• The Village could save an estimated 31 million dollars in contributions by
having police and fire pensions funded at 100 percent by 2040, because
investment earnings offset future costs. It is better for pension funds to be 100
percent funded by 2040 instead of 90 percent funded.
• The Village's pension funds are funded within a comparable range of
surrounding communities' pension funds. Staff will have the updated funding
data in August, but we should all be 60 percent or greater.
• Reviewed pension consolidation timeline. The target date for consolidating
investments is June 2022. The state estimates a loss of $1 million per day in
potential investment revenue with existing state pension structure. Certain
investment markets become available with larger investment pools.
• Pension consolidation includes investment and benefit administration,
implemented in phases. Discussed savings from reduced pension board
training requirements and investment management fees as outcomes from
consolidation.
b. Alternative Revenue Analysis — (Continuing)
Mr. Thakkar explained staff is still working on the analysis and is waiting for April 2020
revenue figures. The analysis will be updated once the revenue data is received.
VI. Any Other Business
None.
VII. Chairman's Report
None.
VIII. Finance Director's Report
Mr. Thakkar shared Mount Prospect's primary equalized assessed value (EAV) numbers
and provided a brief history on the EAV trend since 2009. The EAV is now near $2
billion. In addition, staff is working on the community investment plan and the 2021
budget right now.
IX. Next Meeting:
Thursday, July 23, 2020, 7:00 p.m., Venue — To Be Determined
X. Adjournment:
Motion by Commissioner Grochocinski, seconded by Commissioner Arndt to adjourn
the meeting. Chair Chokshi called a voice vote.
Motion Carries.
The meeting adjourned at 7:56 pm.
Alexander Bertolucci
Assistant to the Village Manager
Finance Commission Page 2 of 2 06/25/2020