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HomeMy WebLinkAbout05/25/2023 FC Minutes FINANCE COMMISSION MEETING MINUTES Thursday, May 25, 2023 rd Executive Conference Room – 3Floor, Village Hall Mount Prospect, IL 60056 I.Call toOrder Meeting called to order at 7:01p.m. Commission members present:Yulia Bjekic, Trisha Chokshi, Vince Grochocinski, and Kenneth Arndt 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 byVince Grochocinskiseconded byYulia Bjekicto approve theminutes of the Finance Commission Special Meeting of March 23, 2023. Chair Chokshi called a voice vote. Motion passed. Ken Arndt abstained due to being absent from the March 23 meeting. III. Citizens to be Heard None IV. Old Business None V. New Business a) Intergovernmental Revenue Review Mr. Thakkar stated there is only one month of revenue reported by the State and the Commission will revisit this item in July or August. In addition, the Village received a letter from the Department of Revenue stating they will be conducting a true-up for Mount Prospect’s allocation of the Local Government Distributive Fund. The Village is expected to receive additional revenues from this true up which will be provided by the State over multiple months. b) Vehicle Sticker Program Mr. Thakkar reviewed the history of the Vehicle Sticker Program in Mount Prospect which started in 1974. In 2022, the cost of the program was $114,413 or 8.7% of the program’s revenue. He shared most neighboring communities have eliminated their vehicle stickers; Arlington Heights is the only remaining town; however, they are also considering elimination. Mr. Thakkar also shared Municipal Motor Fuel Tax rates from the same communities. Mr. Thakkar presented issues with the current program that include its higher cost of collection compared to other village revenue sources and declining vehicle sticker purchases. The Vehicle Sticker Program was suspended this year and $1.4 million was transferred from the General Fund to the Street Construction Fund to offset the lost Finance Commission Page 1 of 3 05/25/2023 revenue. There are alternativefunding optionsand outperformingrevenues to replace the vehicle sticker revenue in the future. Mr. Thakkar reviewed the alternative funding option’s strengths and challenges. However, he stated staff’s recommendation is to eliminate the vehicle sticker program because there is enough intergovernmental revenue to replace revenues lost from the program. Mr. Thakkar responded to questions from the Finance Commission: A business can claim fuel as a business expense so increasing the motor fuel tax rate should not be an additional burden on businesses. It makes sense to deploy the sale tax revenue to capital project costs. The growth in fund balance is the result of five to six revenue sources. If there is a revenue source decrease or elimination, staff would have to start the contingency planning process and determine how to proceed. The Village has capacity to replace a revenue source and doing so would reduce the financial burden on residents. Motion by Kenneth Arndt seconded by Vince Grochocinski to approve the staff recommendation to eliminate the vehicle sticker program and reallocate revenues from the General Fund to support the Street Construction Fund. Yulia Bjekic stated she would vote in favor of the motion only because the Vehicle Sticker Program is already suspended and bringing it back would likely be very difficult. Yea: Ken Arndt, Yulia Bjekic, Vince Grochocinski, Don Ocwieja Nay: Trisha Chokski Motion passed. VI. Any Other Business None VII. Chairperson’s Report None VIII. Finance Director’s Report Mr. Thakkar stated there were no major items to report and reviewed the Monthly Financial Report with the Commission. In response to questions, Mr. Thakkar explained that the State’s Cannabis Education Fund is distributed to all towns based on population with the funds restricted for police department education and training. In addition, Mount Prospect should be receiving some funds; the exact amount is to be determined, by the State of Illinois’ multi-state opioid settlement. Mr. Thakkar also shared the tentative budget calendar for 2024 budget. IX. Next Meeting: Motion by Yulia Bjekic seconded by Kenneth Arndt to cancel the regular meeting of the Finance Commission scheduled for June 22, 2023. Chair Chokshi called roll call vote. Motion passed unanimously. Finance Commission Page 2 of 3 05/25/2023 X.Adjournment: Motion by Yulia Bjekic seconded by Vince Grochocinski to adjourn the meeting. Chair Chokshicalledroll call vote. Motion passed unanimously. The meeting adjourned at 8:13 p.m. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 3 of 3 05/25/2023