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HomeMy WebLinkAbout08/17/2022 FC Minutes FINANCE COMMISSION – SPECIAL MEETING MINUTES Wednesday, August 17, 2022 rd Executive Conference Room – 3 Floor, Village Hall Mount Prospect, IL 60056 I. Call to Order Meeting called to order at 7:00 p.m. Commission members present: Kenneth Arndt, Yulia Bjekic, Trisha Chokshi, Vince Grochocinski, William Grossi and Don Ocwieja. Commission members absent: Pam Bazan Staff present: Director of Finance Amit Thakkar, Deputy Director of Finance Jennifer Fitzgerald and Assistant to the Village Manager Alexander Bertolucci. II. Approval of Minutes a. Motion by William Grossi seconded by Yulia Bjekic to approve the minutes of the Finance Commission regular meeting of July 28, 2022. Chair Chokshi called a voice vote. Motion Passed unanimously. III. Citizens to be Heard None IV. Old Business None V. New Business a) Second Quarter Financial Review Director of Finance Amit Thakkar stated tonight’s presentation is a more detailed look of the second quarter financial review presented to the Village Board last night. Mr. Thakkar began by summarizing the 2022 budget challenges (i.e. record inflation, supply chain issues, labor shortages, and market uncertainties) and second quarter highlights (i.e. record breaking revenue collections, lagging in capital expenditures, strong economic growth in Mount Prospect, return to normalcy, resumed village sponsored events, rising interest rates). He noted the Village was able to lock in an interest rate of 2.8% for Series 2013 Bond refunding occurring later this year. He stated the second quarter ended with $103.6 million in total cash and investments and the year-to-date change in cash and investments totals $26.8 million; however, this includes $10 million in bond issuance. Mr. Thakkar presented year-to-date revenues by category. Overall, the Village has collected $3.8 million more in revenues year-to-date than 2021. He noted the first installment of property taxes were received and the second installment is expected to be delayed six to eight months. He also noted the 100% increase in Fine & Forfeits revenues is due to the police department now having an in house adjudication program and no longer needing to pay fees to Cook County. Finance Commission Page 1 of 3 8/17/2022 Mr. Thakkar provided additional information in response to questions and comments from the Finance Commission: The Village does not have investment responsibility for the consolidated police and fire pension funds The second installment of American Rescue Plan revenue cannot be recognized as revenue until it is spent Taxes generated within the Randhurst Business District are shared with Randhurst. The funds are used to pay off the note from when it was redeveloped and in 2047 any outstanding balance will be written off by the Village Sale of Randhurst out lots was approved by the Village Board and revenues DLC generates by sales may be used to reinvest into the mall or pay off debt Mr. Thakkar provided a further in-depth analysis of the Village’s major revenue sources and explained the projected surpluses. The year-to-date expenditures are lagging behind mostly due to timing of capital projects. He spoke on the inflationary impacts to the budget and departments responding by modifying the scope of work and rebid to stay within budgetary limits. Many projects start in the second quarter with payout happening in quarters three and four. He gave a summary of expenditures by department and category. The General Fund ended 2021 with $30.8 million in unrestricted reserves (44% of General Fund Budget) and $18.6 million in unencumbered cash balance (27% of General Fund Budget). Year-to-date 2022 unrestricted reserves increased to 32.7 million (47% of General Fund Budget) and unencumbered cash balance increased to $32.5 million (47% of General Fund Budget). Fiscal year 2022 is projected to have a General Fund Surplus of $7.5 million. Of this amount, $4,150,000 million will be transferred out to multiple funds to fund capital projects and abate portions of the property tax levy payable in 2023. Mr. Thakkar noted the Village Board has approved some of these transfers so far and the rest will be presented as a budget amendment. Mr. Thakkar stated current inflation is at 8.5% (July 2022) and it was 9.06% in June. He also gave a comparison of fuel prices the Village paid between May-July 2021 and May-July 2022. Mr. Thakkar concluded the second quarter review by informing the Finance Commission about a proposed budget amendment to accommodate a 2.0% one-time retention bonus for its non-union employees (total cost $230,000) as the cost of living adjustments effective January 1, 2021 were not in line with inflation and created a reduction in real wages. In addition, the private sector is offering higher wages and other benefits in this very competitive job market. Mr. Thakkar provided additional information in response to questions and comments from the Finance Commission and public: Non-union employees participate in the Illinois Municipal Retirement Fund The nature of local government requires employees to be on site Non-union employees have a performance evaluation system. If the employee meets standards then they will receive a cost of living adjustment. Higher performers are eligible for a Performance Based Increase, which for 2022 was a range of up to 1.2% Cost of living adjustment is based on customer price index Finance Commission Page 2 of 3 8/17/2022 The Village conducted a Class and Compensation Study and staff updates salary bands every other year. Market adjustments may be made on a case- by-case basis Public Comment: Pat Rubina Can Dota Avenue Commented that the Village needs to be more transparent Would prefer Village staff to work on site and not remotely Shared concerns regarding property taxes, wage increases and the proposed one-time retention bonus Steve Polit 601 N. Wilshire Dr. Randhurst Village sold three out lots – PNC Bank, Buffalo Wild Wings, Bank of America Noted that properties have property tax refunds available to them and they are not trying to capture their refunds Wheeling Township will have a referendum question on the November ballot about creating a Mental Health Department The Village needs to do a better job at communicating the benefits of what the village is doing (i.e. no property tax increase in four of the past five years) VI. Any Other Business None VII. Chairperson Report None VIII. Finance Director’s Report a. Monthly Report - None XI.Next Meeting: September 22, 2022 IX. Adjournment: Motion by Vince Grochocinski seconded by Kenneth Arndt to adjourn the meeting. Chair Chokshi called a voice vote. Motion Carried unanimously. The meeting adjourned at 8:14 pm. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 3 of 3 8/17/2022