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HomeMy WebLinkAbout07/22/2021 FC AgendaFINANCE COMMISSION MEETING MINUTES Thursday, July 22, 2021 Village Hall — 3 d Floor, Executive Conference Room 50 S. Emerson St., Mount Prospect, IL I. Call to Order Meeting called to order at 7:01 p.m. Commission members present: Kenneth Arndt, Yulia Bjekic, Trisha Chokshi, Vince Grochocinski, Tom Pekras and Don Ocwieja Commission members absent: Pam Bazan Staff present: Director of Finance Amit Thakkar and Assistant to the Director of Finance Jennifer Fitzgerald II. Approval of Minutes a. Commissioner Grochocinski, seconded by Commissioner Pekras moved to approve the minutes of the Finance Commission regular meeting of June 23, 2021. Chair Chokshi called a voice vote. Motion passed unanimously. III. Citizens to be Heard None. IV. Old Business American Rescue Plan Director of Finance Amit Thakkar thanked the Commission for their feedback. Staff is still working on the Human Service Department's ARP spending plan. Staff planned to present the proposed American Rescue Plan (ARP) allocations along with the second quarter review in August; however, there will be nojoint workshop with the Village Board in August. Commissioner Grochocinski, seconded by Commissioner Arndt, moved to schedule a Special Finance Commission meeting on August 26. Chair Chokshi called a voice vote. Motion passed unanimously. (August 26 is the regular scheduled meeting date and the meeting was not cancelled prior this motion. The commission will hold their regular scheduled meeting on August 26.) V. New Business a) Alternative Revenue Analysis Director of Finance Amit Thakkar reviewed the different types of municipal government revenues and revenue sources. He stated the Village has robust alternative revenue sources, which allows the Village to levy a lower property tax rate compared to other local towns. He reviewed the variety of alternative revenue sources (i.e. sales tax, income tax, use tax, motor fuel tax, telecom tax, food and beverage tax, government grants, etc.) and showed how much the Village has collected from each source in 2021 Finance Commission Page 1 of 3 7/22/2021 along with historical collections. He noted the Village is experiencing record-breaking sales tax growth this year. Contributing factors may include COVID stimulus funds, increasing construction prices, and consumer price index increasing 6%. Income tax collection is also up with the Village collecting $120,000 more in 2020 than in 2019 and have collected 90% of the budgeted income tax revenue for 2021 so far. He shared tax collection information for telecom, and franchise and utility taxes. He noted that online sales have increased tremendously over the last year and we have seen a corresponding increase in tax receipts. Food and beverage tax and the real estate transfer tax program were reviewed. Staff welcomes ideas from the Commission on alternative revenue sources. Staff provided the following in response to questions from the Finance Commission: • Video gaming tax use is reserved to abate the debt service levy • Local recreational cannabis tax collection started July 1 • The state reduced the municipal share of distributed income tax revenues • Illinois general assembly determines the income tax rate • The state charges a collection fee for collecting local taxes • The motor fuel tax is earmarked for street maintenance. Tire or mileage tax are ideas for electric vehicles • Staff tries to make sure Mount Prospect companies have help and appropriate business infrastructure, if needed • Provided information on tax revenue sharing agreement and business district taxes. b) Operating and CIP Budget Expectation Director of Finance Amit Thakkar asked what commission members expectations are for the operating and community investment program (CIP) budgets. There was general discussion regarding format of upcoming budget presentations. c) Financial Updates Director of Finance Amit Thakkar provided an overview of the Monthly Financial Report. VI. Any Other Business None. VII. Chairman's Report None. VIII. Finance Director's Report None. XI. Next Meeting: August 26, 2021 IX. Adjournment: Motion by Commissioner Pekras, seconded by Commissioner Arndt, to adjourn the meeting. Finance Commission Page 2 of 3 7/22/2021 Chair Chokshi called a voice vote. Motion Carried unanimously. The meeting adjourned at 8:38 pm. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 3 of 3 7/22/2021