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Home My WebLink About04/26/2022 COW MinutesVillage of Mount Prospect Committee of the Whole - Joint Village Board and Finance Commission Meeting Minutes Tuesday, April 26, 2022 / 6:00 p.m. 1. CALL TO ORDER The meeting was called to order by at 6:08 p.m. by Mayor Paul Hoefert in the Board Room at Village Hall, 50 S. Emerson Street. 1. Roll Call a. Village Board The following members of the Village Board of Trustees were present upon roll call by the Village Clerk: Mayor Paul Hoefert,. Trustee Agostino Filippone, Trustee Terri Gens, Trustee John Matuszak, Trustee Peggy Pissarreck, Trustee Richard Rogers and Trustee Colleen Saccotelli. No member was a bsent. b. Finance Commission The following members of the Finance Commission were present upon roll call by the Chairperson of the Finance Commission, Trisha Chokshi: Commissioner Ken Arndt, Commissioner Pam Bazan and Commissioner William Grossi. Absent were Commissioner Yu I is Bjekic, Commissioner Vincent Grochoci nski, and Commissioner Don Gcwieja. 2. Approval of the Committee of the Whole Minutes - March 8, 2022 2.1 Minutes of the Committee of the Whole Meeting - March 8, 2022 Motion by Colleen Saccotelli, second by Richard Rogers to approve the Committee of the whole minutes of March 8, 2022: Aye: Agostino Fi I i ppone, Terri Gens, John Matuszak, Peggy Pissarreck, Richard Rogers and Colleen Saccotelli Nay: None Final resolution: Minutes approved. 3. Citizens to be Heard None 4. Discussion Items 2022 First Quarter Review - Joint Workshop with the Village Board and Finance Commission Village Manager Michael Cassady commended Director of Finance Amit Thakkar and Assistant to the Finance Director Jenny Fitzgerald and the Finance team who led the Village through the many challenges brought on by the Covid-19 pandemic. Mr. Cassady also acknowledged Village staff who adjusted, pivoted and out -performed during the past two years of uncertainty. Mayor Hoefert added his compliments to Village leadership, Village teams and staff for their commitment to the community during these unprecedented times. K: Director of Finance Amit Thakkar presented the Village of Mount Prospect's First Quarter Financial Review of 2022. Mr. Thakkar began by highlighting achievements attained in 2021 despite facing challenges due to Covid-19 including economic downturn, rising inflation and supply chain issues. The Village recorded historic high revenue collection, received government grants and achieved a 0% property tax levy. Mr. Thakkar presented 2021 Unaudited Financial Results. ■ The Village achieved growth in intergovernmental revenues in 2021 and collected $52 million against the original budget of $43 million. ■ State Sales Tax is the single largest revenue source for the Village; the 2021 sales tax totaled $29 million, representing a 34% increase over 2020 collections. The Village of Mount Prospect ranks fifth behind Chicago, Naperville, Joliet and Schaumburg as the greatest generator of State Sales Tax. • The State Income Tax is distributed as a per capita item. The 2021 distribution is $132 per capita; $100 per capita distribution was expected. The 2020 census reported a 4.95% increase in the Village's population, from 54,167 to 56,852. • State Use Tax collection increased from $33.2 per capita to $41.6 during COVID-19; due to a change in law, there is a slight reduction in the Use Tax collected in 2021 however, there will be a corresponding increase in the State Sales Tax. Home Rule Sales Tax is a stable revenue source totaling from $5.3 million to $5.5 million; Home Rule Sales tax applies to all general merchandise excluding qualified drug and food; 2021 collections increased by $1.4 million or 25% over 2020 collections. ■ Food and Beverage Tax revenue recovered from a difficult year in 2020; the restaurant industry in the Village continues to recover and saw an increase of 27% over 2020. ■ other revenue sources include ambulance -billing fees, parking revenues and cannabis tax revenue, which has not been significant since tax collection began in July 2021; staff expects this to increase in 2022. 2021 unaudited expenditures are within the prescribed budgetary limits; the actual total expenditures for 2021 total $121,795,429 representing 91% of the budget spent. Police and Fire Consolidated Pension Board decreased the future interest rate assumptions due to downward market pressure from 7.5% to 7.0%; a total increase in Police and Fire Pension costs in 2021 was $1.7 million representing 8.7% of the total Village Levy. Mr. Thakkar presented the first quarter revenue analysis for 2022. The total recognized revenues for the first quarter is $26.4 million. This collection is trending higher by $3.2 million compared to the first quarter collection in 2021. Mr. Thakkar presented First Quarter Revenues for FY 2022: ■ First installment of property taxes received on time; second installment will be delay by up to six months; most other tax collections are on track • The Rebuild Illinois Grant was received in the first quarter of 2022; the second installment of the American Rescue Plan is expected in May 2022 Mr. Thakkar presented the first quarter expenditures for 2022 totaling $24.8 million. The expenditures are trending higher by $3.2 million compared to the same quarter in 2021 due to higher Personnel and Capital Improvment costs. Mr. Thakkar presented other items of interest including Home Rule Sales Tax. This tax is not collected on food/grocery and medicine transactions. The Village has used 25% of the collected Home Rule Sales Tax for operation expenditures (General Fund). Because the Village has sufficient revenues for the General Fund, Mr. Thakkar stated staff is proposing to reallocate Home Rule Sales Tax for the Street Construction Fund, Flood Control and Capital Improvement Fund. Further Board discussion of staff's proposal will be required in the near future. 3 Mr. Thakkar presented a proposed State Sales Tax reallocation for the 2023 budget year. Revenue from State Sales Tax is generally used for capital projects and would not impact the operating budget. The Street Construction Project Fund is currently funded in part by revenues from the Vi I lage's Vehicle sticker program totaling $1.4 million. The Village anticipates a total of $1.5 million in new revenues, which are sufficient to eliminate the Vehicle sticker program. Mr. Thakkar stated staff will propose to eliminate the Vehicle sticker program for 2023 and onwards subject to consistent performance of the sales tax revenue. The Board and Finance Commission briefly discussed this consideration. Mr. Thakkar reminded the Board that per Village Code, revenues from the Vehicle sticker program are restricted to maintenance/improvements of Village streets and road projects. Mr. Thakkar presented the Flood Control Construction Fund. Staff will propose the elimination of the fixed storm sewer fee beginning in 2023 subject to consistent performance of the sales tax revenue. Mr. Thakkar discussed the property tax levy and the Village and Library combined levy with and without abatements. Mr. Thakkar also discussed other items that could affect the 2022 budget. Mr. Thakkar stated inflation is at a 30 -year high; 6.6% of the budget is impacted my inflation. Mr. Thakkar noted the Police Department is proposing to add a Community Relations Officer who will handle Various community outreach programs, social media management, community policing and the Citizen's Police Academy. The Community Relations Officer will be a key player in further strengthening the bonds between the community and police. The total cost of this position, including pension contributions, is $176,831. Mr. Thakkar answered questions from the Village Board and Finance Commission. A discussion regarding Mr. Thakkar's presentation followed. Mr. Thakkar concluded the discussion by thanking Jenny Fitzgerald, Village Manager Michael Cassady, Assistant Village Manager Nellie Beckner, Village leadership team, Finance commission and the Village Board for their support and commitment to fiscal responsibility. Public comment: Steve Pol it Mount Prospect resident • Shared comments regarding other impacts to the budget that should be considered There was no additional public comment nor any further discussion. S. Any other Business None 6. Adjournment There being no further business to discuss, Mayor Hoefert asked for a motion to adjourn. Trustee Rogers, seconded by Trustee Saccotel I i, moved to adjourn the meeting. By unanimous roll vote of the Village Board and Finance commission, the April 26, 2022 committee the Whole Joint Village Board and Finance Commission workshop adjourned at 8:03 p.m. Respectfully submitted, Karen M. Agoranos Village Clerk 4