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HomeMy WebLinkAbout10/27/2022 FC Minutes FINANCE COMMISSION MINUTES Thursday, October 27, 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 and William Grossi. Commission members absent: Pam Bazan and Don Ocwieja 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 Kenneth Arndt to approve the minutes of the Finance Commission regular meeting of September 29, 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 explained the budget, levy and abatements approval process and required public hearings. Mr. Thakkar provided a brief summary of the proposed 2023 budget presentation that was presented at the September Finance Commission meeting and the Village Board meeting on October 18. There were no changes to the proposed 2023 budget, and remains as originally presented. Mr. Thakkar responded to a question from the Finance Commission. He stated public hearings are the main aspect of the budget process and the Finance Commission meeting occurs before the public hearings. Staff and the Commission may discuss changes to the budget schedule in the future. Public Comment Steve Polit - Resident Concerned that the 2023 budget calendar in the 2022 budget was not amended as the budget schedule changed through 2022. He also expressed concern about getting more residents involved in the budget process. There was general discussion on the budget meeting calendar and schedule of Village Board and Finance Commission meetings. Mr. Thakkar also explained public hearings Finance Commission Page 1 of 4 10/27/2022 are required and the timeline for filing the approved budget documents with the county. Mr. Thakkar responded to questions from the Finance Commission: The Mount Prospect Public Library budget schedule is two weeks ahead of the Village; they adopted their budget in September Budget presentations were clear that the Village’s share of the property tax is increasing and the library’s share is decreasing for a net zero impact. Same slides were presented at Finance Commission and Village Board meetings Without abatements the property tax levy would be increasing 16% The Department of Insurance usually lags in adopting the newest life expectancy figures Tier 2 pension participants bring the overall pension obligation down; however, more participants also increases overall pension obligation The goal is to have water rates at an amount to generate sufficient funding to maintain the system without taking out bonds for infrastructure maintenance Wells are currently the Village’s backup water system The recreational cannabis revenue the Villages is receiving per capita from the state for training is higher than the Village is collecting locally. Public Comment Steve Polit - Resident In response to Mr. Polit’s question, Mr. Thakkar stated the Library’s levy did decrease by ten percent. The Village and the Library worked together toward the net zero property tax levy increase. There was discussion on concerns regarding how the property tax levy is presented as a net zero percent increase. Motion by William Grossi seconded by Yulia Bjekic to approve the proposed abatement schedule as presented by staff. Chair Chokshi called a voice vote. Motion Carried unanimously. Motion by Kenneth Arndt seconded by William Grossi to approve the proposed levy amount as presented by staff with the recommendation that it is stated the Village’s portion is increasing 5% and the Library’s portion is decreasing 10%, resulting in a net 0% property tax levy. Chair Chokshi called a voice vote. Motion Carried unanimously. Motion by Vince Grochocinski seconded by William Grossi to approve the budget as presented with a recommendation that the Vehicle sticker program is a significant revenue source for the street resurfacing program and that staff should reevaluate the program for the budget process next year. Chair Chokshi called a voice vote. Motion Carried unanimously. Finance Commission Page 2 of 4 10/27/2022 Public Comment Steve Polit - Resident In response to Mr. Polit’s question, Mr. Thakkar stated the Finance Department staff time is fixed. We need staff at the front deck. Suspending the Vehicle Sticker Program might provide some savings in processing and overtime costs. There will be a reduction in fulfillment costs. b) Real Estate Transfer Tax Updates Mr. Thakkar reviewed revenues from real estate transfers from 2021 through September 2022, number of stamps sold and average purchase price. There were several large property transfers last year; however, the Village has collected 35% more than last year so far. Forecasting a total revenue collection of $1.3 million and the budget is $1.1 million. The Village is beginning to see more commercial transactions than residential and the mortgage market is influencing sales. c) Monthly Reports Mr. Thakkar reviewed the Monthly Financial Report for September. Public Comment Steve Polit - Resident Asked if the Village would consider communicating to residents how the timing of the property tax bill payment may affect their income tax return. VI. Any Other Business None VII. Chairperson Report None VIII. Finance Director’s Report Electric Utility Tax Mr. Thakkar stated the Village’s Electric Utility Tax was adopted a few decades ago and it was last updated in 2003. He provided a rate comparison to surrounding communities and highlighted that the Village’s Electric Utility Tax rates are the lowest. On average, a family household uses 800 to 900 kWh of electricity per month, and a small business normally uses anywhere from 5,000 to 15,000 kWh of electricity per month. The proposed rate structure is not proposing any rate increase up to 1,000,000 kWh. The proposed rate increase will impact only industrial users using more than 1,000,000 KWH, and as of today, the Village does not have any users in this category. He stated that after the proposed rate increases the Electric Utility Tax rates would still be lower than surrounding towns. Mr. Thakkar provided additional information in response to questions and comments from the Finance Commission. There is no impact on existing users. Elk Grove Village electric utility rates are higher and data centers are still interested in operating there. Cloud HQ is within the South Mount Prospect Tax Increment Finance District and they have received a class 6b tax incentive. Finance Commission Page 3 of 4 10/27/2022 The user will pay the electric utility tax and not the developer of Cloud HQ. There was general discussion regarding the electric utility rate increase and the Cloud HQ development. Motion by William Grossi seconded by Kenneth Arndt to approve the Electric Utility Tax rate increases as presented by staff. Chair Chokshi called a voice vote. Motion Carried unanimously. XI.Next Meeting: Motion by Yulia Bjekic seconded by Vince Grochocinski to cancel the regular meetings of the Finance Commission scheduled for November and December. Chair Chokshi called a voice vote. Motion Carried unanimously. IX. Adjournment: Motion by Kenneth Arndt seconded by Yulia Bjekic to adjourn the meeting. Chair Chokshi called a voice vote. Motion Carried unanimously. The meeting adjourned at 8:59 pm. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 4 of 4 10/27/2022