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HomeMy WebLinkAbout02/22/2023 FC Minutes FINANCE COMMISSION SPECIAL MEETING MINUTES Wednesday, February 22, 2023 rd Executive Conference Room – 3Floor, Village Hall Mount Prospect, IL 60056 I.Call toOrder Meeting called to order at 7:02p.m. Commission members present:Kenneth Arndt,Pam Bazan, Yulia Bjekic (arrived at 7:05am), Trisha Chokshi, Vince Grochocinski, William Grossi, and Don Ocwieja. Commission members absent: None 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 byWilliam Grossi seconded byKenneth Arndtto approve theminutes of the Finance Commission regular meeting of January 26, 2023. Chair Chokshi called a voice vote. Motion Passed unanimously. III. Citizens to be Heard None IV. Old Business a) 2023 Work Plan Director of Finance Amit Thakkar stated there were no edits to the work plan since the last meeting and the Commission may request discussion topics throughout the year. In response to a question from the Commission, Mr. Thakkar stated staff considered an ordinance addressing short-term rentals, however, there are some legislative uncertainties. He also noted state legislators proposed a Tax Increment Financing (TIF) bill and staff is monitoring it. Kenneth Arndt stated he is currently an interim Co-Superintendent of School District 214 (District 214). He shared that District 214 hired a lobbyist to counter the proposed Bears proposal involving TIF. Senator Ann Gillespie asked District 214 to help with TIF legislation at the State level as the existing legislation is counterproductive to school districts. He stated that a meeting between District 214 and the Village administration on TIF may be beneficial. Motion by Vince Grochocinski, seconded by William Grossi to approve the 2023 Work Plan. Chair Chokshi called a voice vote. Motion Passed unanimously. V. New Business Finance Commission Page 1 of 4 02/22/2023 a)Fund Balance Policy Mr. Thakkar introduced the discussion item and stated the discussion will continue over at the March meeting. Mr. Thakkar reviewed fund balance and explained why fund balances are important. He also reviewed the Village’s current fund balance policy, fund balances and how General Fund fund balance transfers help fund capital projects, debt service and pension funds. He noted the fund balance policy impacts the Village’s bond rating and towns with 100% fund balance usually have AAA bond ratings. He also noted that the Village needs long term contingency reserves for a possible economic downturn. Staff recommends increasing fund balances to 40 - 50% and when balances exceed 60% funds are transferred for pension, capital, and economic stabilization funds. The proposed change to the fund balance policy would provide an additional three months of reserves for daily operations. Mr. Thakkar stated this is only an informational item and another presentation will be made at the next Finance Commission meeting. Mr. Thakkar responded to questions from the Finance Commission: Vehicle Replacement Fund is an enterprise fund and not part of governmental activity, part of net position, and is separate from fund balance. If departments were not to make internal lease payments, the funds would be part of unassigned fund balance Financials are presented as government and government-wide (full accrual accounting). A contingency “rainy day” fund is considered in credit ratings; all financials and fund balances are considered during a credit rating Change of credit rating outlook can save $100,000 every year; next bond rating is in 2025 Transferring of funds only triggers when fund balances exceed 60% The Village’s property tax rate is the lowest of surrounding towns March revenue data will likely result in a General Fund balance greater than 50% 60% threshold is a guiding principle, there is flexibility if the amount needs to be reevaluated Restricted revenues sources will be beneficial in the future Public Comment Steve Polit – Resident In response to a question from the public, Mr. Thakkar reviewed home rule vs non- home rule communities’ debt limits and the Village’s current debt. The next bond rating is January 2025 for water system improvements. b) Budget Amendments Mr. Thakkar stated staff is bringing forward two budget amendments: one for fiscal year 2022 and one for fiscal year 2023. The fiscal year 2022 amendment is for projects started in 2022 but not completed in 2022. Certain amounts will be adjusted downward in the 2022 Budget and the same amounts will be adjusted upwards in the 2023 Budget. He reviewed the projects requiring funds to be transferred and why they were not completed in 2022 (i.e. supply shortages, project timelines, etc.). The fiscal year 2023 budget amendment also includes adding funding for police personnel. Two additional police officer positions were approved in 2022 but were not budgeted because staff attempted to secure grant funding for the new positions. The Village was not awarded the grant and will need to fund the positions. Furthermore, the 2023 budget Finance Commission Page 2 of 4 02/22/2023 amendment proposes two new police officer positions. Mr. Thakkar providedinformation related to the request for two new police officer positions. Mr. Thakkar responded to questions from the Finance Commission: The pension contributions will start in 2024 Staff is asking for two additional patrol officers to create an opportunity for the police department to add two patrol officers to the Special Response Team. Staff recommends two patrol officers, sufficient to address the department’s desired response The two patrol officers are not part of the 2023 Budget, the additional officers will help in investigating crimes There were several requestions from Finance Commission for addition information and stats to understand the request for two additional patrol officers. Public Comment Steve Polit - Resident Prospect Heights is short six patrol officers and it is putting more pressure on the north side of Mount Prospect. Motion by Vince Grochocinski seconded by William Grossi to recommend approval of the Budget amendments including funding for two previously approved not budgeted Police Officers. Chair Chokshi called a voice vote. Motion Carried unanimously. Motion by Kenneth Arndt seconded by William Grossi to recommend approval of the required for two additional patrol officers. Chair Chokshi called a roll call vote. Yea – Kenneth Arndt William Grossi, Vince Grochocinski, Don Ocwieja, Trisha Chokshi Nay – Pam Bazan, Yulia Bjekic Yulia Bjekic provided context for her Nay vote noting she would like the Police Chief to present to the Finance Commission, and requests for additional facts/stats and discussion. c) Elk Grove Rural Fire Protection District – Updates Mr. Thakkar shared that Elk Grove Village was set to approve two special service areas (SSA) as stipulated by the intergovernmental agreement regarding the Elk Grove Rural Fire Protection District (EGRFPD); however, the Roppolo subdivision has filed an objection that placed the SSA approval on hold. He reviewed EGRFPD’s contracted fire and EMS service model and noted that the Village of Mount Prospect put a fourth ambulance in service to respond to calls in town that would have otherwise required EGRFPD mutual aid. There was general discussion on the EGRFPD and history of events that have lead up to the current situation. d) Financial Updates Mr. Thakkar stated the Monthly Financial Report is not ready as staff is in the process of closing out January. Staff will provide the report when it is ready. Deputy Director of Finance Commission Page 3 of 4 02/22/2023 Finance Jennifer Fitzgerald announced that Monthly FinancialReports are now posted on the Village’s website under the Finance Department pages. Mr. Thakkar noted that the annual financial audit kicked off on February 13 and the results will be available late April or early to mid-March. VI.Any Other Business None VII.Chairperson’sReport None VIII. Finance Director’s Report None IX.Next Meeting: Regular Meeting of the Finance Commission - March 23, 2023 X. 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 9:00 p.m. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 4 of 4 02/22/2023