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HomeMy WebLinkAbout07/27/2023 FC Minutes FINANCE COMMISSION MEETING MINUTES Thursday, July 27, 2023 rd Executive Conference Room – 3Floor, Village Hall Mount Prospect, IL 60056 I.Call toOrder Meeting called to order at 7:00 p.m. Commission members present: Kenneth Arndt, Trisha Chokshi, Edward Derfler, and Don Ocwieja Commission members absent: Pam Bazan, Yulia Bjekic and Vince Grochocinski 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 Kenneth Arndt seconded by Don Ocwieja to approve the minutes of the Finance Commission special meeting of May 25, 2023. Chair Chokshi called a voice vote. Motion Passed unanimously. III. Citizens to be Heard None IV. Old Business None V. New Business a) Welcome – New Finance Commissioner Edward Derfler Commissioners and staff made introductions. b) Audit 2022 Finance Director Amit Thakkar said the audit was presented to the Audit Committee thth at their June 12 meeting and the Village Board at their July 18 meeting. Mr. Thakkar presented highlights of the audit to the Finance Commission and gave an overview of the core financial statements. The Auditor’s Management Letter included two pronouncements for GASB Statement No. 96 “Subscription-based Information Technology Arrangements and GASB Statement No. 94 “Private-Public and Public- Private Partnerships and Availability Payment Arrangements”. The auditor, Lauterbach & Amen, LLP, will work with the Village to review the new criteria associated with these statements and determine the appropriate financial reporting for these activities. Staff will work to implement these, if appliable, by December 31, 2023, as required by GASB. Mr. Thakkar also stated that the auditors 2021 recommendations were implemented by staff and positively noted by the auditors within this audit. In response to a question from the Finance Commission, Mr. Thakkar stated the delay Finance Commission Page 1 of 3 07/27/2023 in property tax payments last year did not impact the budget or audit. c) Debt Service Review and Ratios Mr. Thakkar gave a debt service review and ratios presentation. He explained the difference between a home-rule and non-home rule community and how the Property Tax Extension Law Limit (PTELL) applies to non-home rule communities. PTELL limits non-home rule communities’ property tax increases to 5% of the last extension and general obligation debt cannot exceed 8.625% of the equalized accessed value. Home rule communities do not have these limits. He reviewed the types of bonds, general obligation and revenue, the Village could issue. He noted how the Village tries to abate enterprise and revenue bonds with dedicated revenue sources. He showed the 2023 debt service schedule and noted staff is trying to minimize the property tax levy impact with abatements. He covered the debt ratios under PTELL and the Village’s ratio which is 2.78% of EAV or 55.6 million. The Village has a AA+ stable outlook credit rating and the next rating call will be in 2026/2027. d) Budget Expectations from the Finance Commission Mr. Thakkar noted the staff provided separate presentations to the Finance Commission, not in a joint workshop with the Village Board, during last year’s budget process. He reviewed the 2024 Budget presentation schedule that mirrors last year’s process. e) Monthly Report Mr. Thakkar reviewed revenues and expenditure to date, fund balance, and trends in real estate transfer stamp tax collection which is trending lower than last year. In response to a question from the Finance Commission, Mr. Thakkar stated revenue th from the recreational cannabis dispensary is 1/10 of their projection. VI. Any Other Business None VII. Chairperson’s Report None VIII. Finance Director’s Report None th IX. Next Meeting: Joint Village Board and Finance Commission Meeting – August 8. X. Adjournment: Motion by Edward Derfler seconded by Don Ocwieja to adjourn the meeting. Chair Chokshi called roll call vote. Motion Carried unanimously. Finance Commission Page 2 of 3 07/27/2023 The meeting adjourned at 7:55p.m. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 3 of 3 07/27/2023