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HomeMy WebLinkAbout08/26/2021 FC MinutesFINANCE COMMISSION MEETING M"InItIlrosp:7t MINUTES Thursday, August 26, 2021 Village Hall — 3 d Floor, Executive Conference Room 50 S. Emerson St., Mount Prospect, IL n/ I. Call to Order Meeting called to order at 7:03 p.m. Commission members present: Yulia Bjekic, Trisha Chokshi, Vince Grochocinski, Tom Pekras and Don Ocwieja Commission members absent: Kenneth Arndt and Pam Bazan Staff present: Director of Finance Amit Thakkar, Assistant to the Director of Finance Jennifer Fitzgerald and Assistant to the Village of 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 July 22, 2021. Chair Chokshi called a voice vote. Motion passed unanimously. III. Citizens to be Heard None. IV. Old Business American Rescue Plan (ARP) Director of Finance Amit Thakkar presented the same presentation, which was made at the last Village Board meeting. The Village does not need a formal spending plan adopted at this time and is trying to meet reporting requirements from the Treasury Department with general project funding allocations. Items in the plan are tentative. The plan is subject to change and further discussion. Mr. Thakkar provided an overview of how the federal government awarded ARP funds and the qualified uses. He explained the formula on how the ARP determines revenues loss for a municipality. Funds meeting the revenue loss criteria are discretionary funds that may be used toward operations. Capital expenditures beyond the qualified uses are limited to the amount you can prove up as revenue loss. He reviewed the Village's proposed use of ARP funds at this time: • Addition of a Police Social Worker • Behavioral Health Subsidy Program • Emergency Assistance Program • Dial a bus • Medical expenses • Job/education/skills training • Internet Access/Digital Literacy Program CCC Expansion Facade Improvement Finance Commission Page 1 of 3 8/26/2021 Green Building Grant Website Improvement Program (for small businesses) Mr. Thakkar stated if the Human Services Department wants to start a program right away then staff will submit for a 2021 budget amendment. The Village is required to report any spending. Staff provided the following in response to questions from the Finance Commission: • Received ARP Funds are sitting in the General Fund as a restricted fund balance • Revenue loss is estimated at $5.3 million for 2020. • Hypothetically, the total allocation may qualify as revenue loss and meet ARP criteria for discretionary uses. • A single audit will be required for ARP funds. A single audit is necessary when the Village receives $750,000 or more in federal or state funding. • The Human Services Department was involved in the process determining ARP funded programs. • Staff will evaluate programs with financial impacts past 2024 and provide recommendations if the program should continue based on need. • The proposed additional Police Social Worker would be available in the evenings and on a separate shift than the current Police Social Worker. • Expanding footprint of the Community Connection Center will help in improving service to the community. • The Mount Prospect Library and Village is under one lease for the Community Connection Center; Village pays the rent in full and the Library reimburses us. • Fagade improvement provides up to 100% matching grant depending upon the scope of the work. Existing program funded by Community Investment Program (CIP) funds. The Village may use ARP funds for this use and reallocate CIP funds to other projects. There are two Fagade Improvement Programs: One for businesses within the Tax Increment Financing (TIF) district and another for businesses outside the TIF area. Last year Fagade Program TIF Funds were reallocated. • The Village already received half of ARP funds. • Any significant allocations will be presented with the 2022 budget. V. New Business a) Financial Updates Director of Finance Amit Thakkar stated the Monthly Financial Report would be available at the end of this month and made a few comments related to revenues. • Intergovernmental revenue is showing a good amount of strength and support. • Sales tax is showing a growth. • Income tax collection is phenomenal. The more the Village can collect revenues from other sources, and the less dependent the Village may be on property taxes. Mount Prospect has a property tax rate less than one percent. Other revenue items are seeing a robust recovery, which will help sustain the recovery in the long run. The first month taxes sales of recreational cannabis were collected for the Village was July, first tax receipts will be received in September. He stated staff is working on the 2022 Operating Budget. There will be two joint Village Board and Finance Commission workshops in October. Finance Commission Page 2 of 3 8/26/2021 Staff provided the following in response to questions from the Finance Commission: • The payment kiosk outside of Village Hall has one to three transactions per day with more transactions on due dates. Staff is working on electronic solutions for billing (i.e. water & refuse) and certain local collected taxes like food and beverage tax. • The Village uses Andres Medical Billing, LTD for ambulance billing. VI. Any Other Business None. VII. Chairman's Report None. VIII. Finance Director's Report None. XI. Next Meeting: September 23, 2021 IX. Adjournment: Motion by Commissioner Grochocinski, seconded by Commissioner Pekras, 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 8/26/2021