Loading...
HomeMy WebLinkAbout09/29/2022 FC MinutesFINANCE COMMISSION — SPECIAL MEETINGrrar+n,xcr MINUTES Thursday, September 29, 2022 Emergency Operation Center, 1720 W. Central Road, Mount Prospect, I L 60056 Call to Order Meeting called to order at 6:00 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, Assistant to the Village Manager Alexander Bertolucci, Director of Public Works Sean Dorsey, Deputy Director of Public Works Jason Leib, Police Chief Michael Eterno, Deputy Police Chief Joseph Garris, Police Commander Mark Weger, and Fire Chief John Dolan. II. Approval of Minutes a. Motion by William Grossi seconded by Yulia Bjekic to approve the minutes of the Finance Commission regular meeting of August 17, 2022. Chair Chokshi called a voice vote. Motion Passed unanimously. III. Citizens to be Heard None IV. Old Business None V. New Business a) Budget 2023 Director of Finance Amit Thakkar started the presentation by sharing the 2023 budget meeting schedule. The next meeting is a joint budget workshop with the Village Board on October 11 at 6 p.m. Mr. Thakkar explained the importance of budgeting and the different types of budgets (operating vs capital budgets; balanced vs deficit budget). The 2023 proposed budget includes a 0 percent property tax increase (combined with Mount Prospect Library), suspending the Vehicle Sticker Program for FY2023, a use of $2.2 million from the General Fund to abate public safety pensions and debt service payments, and increasing personnel levels for various departments. It also has a 3.5 percent increase for refuse rates and water/sewer rates increasing 8 percent per the fee schedule recommended by the 2017 Water Rate Study. Mr. Thakkar reviewed 2023 revenue and expenditure figures by category. He stated that the property tax levy without abatements would reflect a 16.5 percent increase due to updated actuarial tables and decreasing interest rates. The General Fund abatements reduce the property tax levy to 5 percent. At the same time, the Mount Finance Commission Page 1 of 5 9/29/2022 Prospect Public Library property tax levy is decreasing 10 percent. The net result is a 0 percent property tax increase. Mr. Thakkar showed a table that highlights Mount Prospect having the lowest property tax rate compared to Palatine, Buffalo Grove, Des Plaines, Wheeling and Arlington Heights. Mr. Thakkar gave an overview of the Village's major revenue sources including trends. The Village experienced increases in state sales tax, home rule sales tax, income tax and several other revenue sources. He reviewed revenues by category for the General Fund specifically and increases to the water/sewer and refuse rates. He presented the proposed 2023 expenditures. The operating budget increases 8 percent due to increasing pension costs and expected inflationary increases. The proposed 2023 Community Investment Plan is a more typical spending plan after several years of large projects that completed construction this year. Mr. Thakkar provided additional information in response to questions and comments from the Finance Commission: • Capitalized interest increases overall debt, but provides control of the debt structure. • The Village needs to find a source of funds for debt service abatements every year or will need to levy the amount. • The telecom tax is based on the cost of calling features and not the data portion. • The vehicle lease payments were initially suspended in 2020 but were ultimately funded. The 2021 vehicle lease payments were adjusted higher to make up for the planned 2020 suspension. 2022 vehicle lease payments were artificially low due to 2020 and 2021 payments. • Collected $300,000 from the Federal Drug Enforcement Program as part of search and seizures. These funds may be used to purchase certain equipment and cannot be used to replace patrol vehicles or other typical expenditures. • Illinois Municipal League provides financial forecasts. Staff evaluates their forecasts and applies a confidence number to the Village revenue metrics and predictions. • When revenue sources come in above budgeted amounts the surplus provides the revenues to make abatements to the property tax levy. • Cook County has not collected the second property tax installment. The Village has until February 28 to recognize this revenue for the 2022 budget. • American Rescue Plan funds cannot be recognized as revenue until the funds are spent. • The 2023 budget is a balanced budget with carry-over of surplus from 2022. Police Chief Michael Eterno presented the proposed police department budget. Chief Eterno stated the department added a Community Resource Officer during 2022. The overall budget increases 8 percent with majority of the increase due to benefits (i.e. pensions) and contractual services (i.e. vehicle lease payments). The Administration Division budget contains the pension costs for the whole department and it is increasing 16 percent. The cost of cars and outfitting patrol cars are increasing and Chief Eterno explained challenges with ordering and receiving replacement vehicles. Chief Eterno reviewed changes to all of the Police divisions' budgets and the department's proposed capital expenditures. Finance Commission Page 2 of 5 9/29/2022 Police Chief Michael Eterno provided additional information in response to questions and comments from the Finance Commission: • The COPS grant would help augment three years of salary for the two additional patrol officer positions. This builds department staffing back towards levels prior to the Great Recession 10 year ago. • The conductive energy weapons (e.g. Taser) unit would be replaced and not just the batteries. Improvements in Taser design help prevent injuries to officer and the individual being taken into custody especially in closer distance environments. • The department does not currently have a K9 unit. Staff is looking at some options with a different type of dog - search and rescue. • The department had 92 — 94 officers back in the 1990s. • The Village is policing the annexed areas. Police is not patrolling unincorporated areas, but we provide response on mutual aid calls. • 41 people took the most recent patrol officer -hiring test and only half passed the written exam, and half passed the interview. Process resulted in a list of nine candidates. Fire Chief John Dolan presented the proposed fire department budget. He stated the department is increasing the paid on call firefighters (POCs) from 15 - 20 members. POCs provide fire suppression support, public education, and support at community events. POCs also are an opportunity to introduce individuals to the fire service and can be recruitment tool for full time positions. Chief Dolan explained the department is adding six firefighter/paramedics to improve response times in south Mount Prospect with the hiring expected to occur in early 2023. The Village submitted a SAFER grant application to fund the six additional firefighter/paramedics. Chief Dolan gave an overview of the operational budget that is experiencing similar increases as the police department budget with personnel and contractual services being the largest contributors. He also provided a synopsis of the department's proposed 2023 and 2024 capital expenditures. Fire Chief John Dolan and Director of Finance Amit Thakkar provided additional information in response to questions and comments from the Finance Commission: • The consolidation of police and fire pension funds are complete. Decreasing interest rates and updated mortality tables negatively affected the Village's pension funding ratio. The consolidated pension funds may start realizing investment benefits in two to three years. • The department is planning to put a 4th ambulance in service on October 3 (2nd ambulance out of Station 12). • Staff has proposed changes to the Board of Fire and Police Commission Rules and Regulations to further diversify Firefighter/Paramedic candidates. A challenge is that state law dictates hiring practices for fire and police. • 170 candidates participated in the most recent hiring test. This is more than the Village had at the last test. Neighboring communities are getting about 30 candidates to sit for their tests. There was general discussion regarding responding to calls on the south end of town and the Elk Grove Rural Fire Protection District. Finance Commission Page 3 of 5 9/29/2022 Director of Public Works Sean Dorsey presented the proposed 2023 Public Works budget. Mr. Dorsey stated the department is asking for two maintenance personnel allocated to the Streets and Buildings division. Staffing reduced during the Great Recession and since then the department has assumed additional responsibilities and additional buildings. He explained the overlapping position in the Engineering Division that prepared for the retirement of the Village Engineer. Mr. Dorsey presented Public Work's proposed budget by division and explained the increase to contractual services are a reflection of the larger supply shortages, higher gas prices and inflationary challenges. 60 percent of Public Works operating budget is contractual services. He stated that tree trimming and stump removal contractual services budget increases 10% in anticipation of higher bid results in 2023. He explained that the Administration Division budget has a 35.4% increase mainly due to increases in vehicle lease payments for the whole department. He also provided a review of the proposed capital expenditures. Director of Public Works Sean Dorsey and Director of Finance Amit Thakkar provided additional information in response to questions and comments from the Finance Commission: • We all do our part regarding sustainability, all divisions in Public Works are involved in those projects and programs. Staff regularly explores grant -funding opportunities for projects. • The Sidewalk Program aims to fill in missing sections of sidewalk throughout the Village. • Fairview Gardens Sanitary Sewer Improvements are required due to Metropolitan Water Reclamation District's requirement to eliminate private side inflow of clear water in sanitary sewer systems. • The Northwest Water Commission interconnect would become the primary backup water supply. A well costs $350,000 to $500,000 every 20 years to maintain. • Vehicle lease payments are funding vehicle replacement on planned cycle. • There was a budget amendment this year for additional funds to purchase unleaded and diesel fuel. Public Comment: Steve Polit Resident Director of Finance Amit Thakkar responded to the public comment. The Village budget provides a contingency fund to address unforeseen events, which the Village may need to dedicate resources to resolve or assist. VI. Any Other Business None VII. Chairperson Report None Finance Commission Page 4 of 5 9/29/2022 VIII. Finance Director's Report None XI. Next Meeting: October 27, 2022 IX. Adjournment: Motion by Kenneth Arndt seconded by Vince Grochocinski to adjourn the meeting. Chair Chokshi called a voice vote. Motion Carried unanimously. The meeting adjourned at 8:36 pm. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 5 of 5 9/29/2022