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Home My WebLink About2.1 10-08-2023 COW Joint Board MinutesVillage of Mount Prospect Committee of the Whole - Joint Village Board and Finance Commission Meeting Minutes Tuesday, August 8, 2023 / 6:00 p.m. 1. CALL TO ORDER The meeting was called to order by at 6:09 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 Vincent Dante, Trustee Agostino Filippone, Trustee Terri Gens, Trustee Bill Grossi, Trustee John Matuszak and Trustee Colleen Saccotelli. 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 Vincent Grochocinski, Commissioner Don Ocwieja and Commissioner Edward Derfler Absent: Commissioner Ken Arndt, Commissioner Pam Bazan, Commission Yulia Bjekic 2. Approval of the Committee of the Whole Minutes - July 11, 2023 2.1 Minutes of the Committee of the Whole Meeting - July 11, 2023 Motion by Colleen Saccotelli, second by Bill Grossi to approve the Committee of the Whole minutes of July 11, 2023: Aye: Vincent Dante, Agostino Filippone, Terri Gens, Bill Grossi, John Matuszak and Colleen Saccotelli Nay: None Final resolution: Minutes approved. 3. Citizens to be Heard None 4. Discussion Items 4.1 2023 Second Quarter Review - Joint Workshop with the Village Board and Finance Commission Director of Finance Amit Thakkar presented the highlights of the 2023 Second Quarter Review: • Strategic Plan completed - allows staff to plan and budget for future projects • Village received a Clean and Unqualified Opinion following the annual audit or Village financial statements • Total revenues collected during the second quarter total $42.5 million; includes a recorded all-time high monthly sales tax collection in June 2023 ($2.9 million) • Revised Fund Balance Policy; new Fund Balance Policy levels at 30-50 percent; established Economic Emergency Fund with an initial funding of $6.5 million from 2022 surplus • Positive investment income from the Pension Funds Mr. Thakkar provided details and compared Q2-2023 revenues with Q2-2022 revenues. Mr. Thakkar stated total revenues from Q2-2023 are higher when compared to Q2-2022 total revenues ($28.8 million) due to timing issues with property tax payment collections. Mr. Thakkar stated property tax payments were collected in the first quarter of 2022. Mr. Thakkar presented 2023 year-to-date revenues (January -June) that total $64.5 million. Mr. Thakkar presented the top revenue sources that include: • State sales tax • Property taxes • State income tax • Home -rule Sales tax • Interest income • Ambulance fees • State Use tax • State Motor Fuel tax • Personal Property Replacement Tax • Food and Beverage tax Mr. Thakkar compared year-to-date data from 2023 with 2022. Overall, 2023 revenue totals represent a $1.4 million increase over 2022 revenues for the same period. Mr. Thakkar presented details regarding major revenue sources. Mr. Thakkar stated $6.0 million from the State Sales Tax will be given to the Capital Project Funds. The remaining sales tax will be part of the General Fund revenues, approximately $26.1 million. Next, Mr. Thakkar presented Q2 2023 expenditures that total $38.3 million. This figure includes the $6.5 million interfund transfer to the Economic Emergency fund. Mr. Thakkar detailed expenditures by department and compared data with 2022 year-to-date data. Mr. Thakkar presented expenditure highlights through the second quarter that include: • Village spent 44.8 percent of the budgeted Personnel Expenditures - $25.3 million • Spent 44.3 percent of the budgeted Contractual Services — $16.9 million • Spent 15.5 percent of the budgeted Commodities and Supplies - $1.2 million Mr. Thakkar added that the Village has conducted capital projects totaling $8.9 million. There are many major projects that are in progress that will be completed in the third and fourth quarters. Mr. Thakkar noted highlights in the Village expenditure schedules. Mr. Thakkar provided details regarding Pension Funds, the Fund Balance, and the Economic Emergency Fund. Mr. Thakkar concluded the Second Quarter Review by stating the Village is in a very strong fiscal position. Aided by a strong local economy, the most recent sales tax to date (May 2023) shows $3.1 million in sales tax collection. In addition, the local real estate market remains competitive. Mr. Thakkar predicted the Village will likely outperform its revenue forecast again for 2023. Mr. Thakkar answered questions from the Village Board and Finance Commission. A discussion regarding Mr. Thakkar's presentation followed. Mr. Thakkar answered questions from the Village Board and Finance Commission. A discussion regarding Mr. Thakkar's presentation followed. Mr. Thakkar provided the following in response to questions from the Board: • The revenue from building permits are up over last year indicating people are reinvesting in their homes • State is flushed with cash and has established their own "rainy day" fund in the amount of $1.2 billion • Low inventory of homes for sale; home values have increased; median household income has also increased Board Comments: • Suggested pushing out information encouraging residents to reinvest in their homes via the Village newsletter • Concerned with dependence on a fluid revenue stream (sales tax); would like Village to diversify revenue sources • Important to promote and grow our business community Public Comment: Steve Polit • Referenced an event in 2008-2009 when property tax bills were delayed and the Village provided assistance to the Library through a loan. Mr. Thakkar responded, stating the library is also in a very strong financial position; when property taxes were delayed last year, Cook County offered a bridge loan program. However, Village would consider assisting the library in the future if needed. Mr. Thakkar concluded the presentation by reiterating the Village's strong economic position. 4.2 Community Investment Plan FY 2024 -FY 2028 Mr. Thakkar presented the five-year Community Investment Plan (CIP) and noted this plan is preliminary. The five year-CIP plan is budgeted for $166.1 million. Public Works project account for approximately 96% of the CIP. Items in the CIP include the following categories and investment: • Streets and Sidewalks - 46% • Utilities - 33% • Fleet and Equipment - 7% • Flood Control and Storm/Sewer - 6% • Building Investments - 5% Mr. Thakkar discussed recurring items totaling $111.9 million versus onetime projects totaling $54.2 million. Mr. Thakkar discussed projects by department and associated funding sources. The CIP investment for 2024 is $32.5 million. Mr. Thakkar discussed key recurring projects in 2024 that include the Street Improvement Program ($5.8 million), Watermain Replacement Program ($5.4 million), Sewer main Rehabilitation Project ($1 million) and Combined Sewer Improvements ($800,000). Mr. Thakkar discussed specific projects planned for 2024: • Village Hall showers, lockers, and fitness area - $350,000; no tax dollars are funding this project. Funding is derived from Employee Incentive Funds • Fire Department radio replacements - $750,000; majority of cost will be paid by the Northwest Central Dispatch Mr. Thakkar introduced Public Works Director Sean Dorsey to discuss proposed Public Works CIP projects. Mr. Dorsey shared details of each project including budget estimates and funding sources including grant opportunities. The projects include: • Melas/Meadows Pedestrian Project • Phase II - Bike Path Improvements • Central Road Resurfacing Projects • Main/Busse Crosswalk • Water Reservoir No 4 Rehabilitation • Public Works Vehicle replacement program Discussions followed each project. Mr. Dorsey answered questions from the Board and Commission. Public Comment Steve Polit • Expressed concerns regarding Main/Busse crosswalk improvements Fire Chief John Dolan presented the Fire Department's vehicle replacement items for 2024 totaling $2.1 million. Chief Dolan stated he is facing similar challenges as others regarding price increases, availability, and long lead times. Replacement vehicles planned for 2024 include: • Pierce Tower Ladder truck • Foam Truck — carryover; re -budgeted for 2024 • Pick-up truck — replacing passenger vehicle Chief Dolan stated all trucks are funded through the Vehicle Replacement Fund. Chief Dolan answered questions from the Board and Commission. Mayor Hoefert provided closing comments. The Board shared comments regarding the second quarter review and Capital Improvment Plan. In response to a question from the Board regarding a public arts plan and a proposed statue of William Busse, Mayor Hoefert stated information is being gathered and will be discussed at a public meeting with input from the community at the appropriate time. No 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 Matuszak, seconded by Trustee Saccotelli, moved to adjourn the meeting. By unanimous voice vote of the Village Board and Finance Commission, the August 8, 2023 Committee the Whole Joint Village Board and Finance Commission workshop adjourned at 8:26 p.m. Respectfully submitted, Karen M. Agoranos Village Clerk