HomeMy WebLinkAbout10/26/2023 FC Minutes
FINANCE COMMISSION
MEETING MINUTES
Thursday, October 26, 2023
rd
Executive Conference Room – 3Floor, Village Hall
Mount Prospect, IL 60056
I.Call toOrder
Meeting called to order at7:01p.m.
Commission members present:Kenneth Arndt, Yulia Bjekic, Trisha Chokshi,Edward
Derfler, Vince Grochocinski 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.
Chair Chokski recognized Commissioner Bjekic and thanked her for her service as she is
resigning from the Commission due to a forthcoming relocation.
II. Approval of Minutes
a. Motion by Kenneth Arndt seconded by Edward Derfler to approve the minutes of the
Finance Commission special meeting of September 28, 2023.
Chair Chokshi called a voice vote.
Motion Passed unanimously.
III. Citizens to be Heard
None
IV. Old Business
1. Budget 2024
Finance Director Thakkar reviewed the 2024 budget highlights first presented at the
September 28 Finance Commission meeting, presented for a second time at the joint
workshop with the Village Board on October 10, and presented again at the Oct. 17
Village Board meeting during the first reading of the budget, levy, and abatement
ordinances. Mr. Thakkar stated tonight’s meeting is to answer any remaining questions
and for the Commission to make budget recommendation.
Mr. Thakkar responded to questions from the Finance Commission:
Video gaming revenue has increased year over year and is now trending
around $250,000 per year. The video gaming tax revenue is dedicated to debt
service abatements.
Investment income is up and offsetting decreases in real estate transfer stamp
revenue.
Provided an overview of intergovernmental revenue sources: sales tax
revenue is $31 million, income tax is $8 million, and remaining categories are
pretty stable. Income tax revenues increased 60% after 2020.
Village Board decided to fund pension 100% by 2040, state requirement is 90%
by 2040. The Village is abating the pension levy with $2 million per year now.
If the Village cannot keep up with abating the pension level, then it may not be
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possible to maintain the higher contributions as the burden would shift to
property taxes. When the State changes eligibility or increases benefits, it add
to the Village’s unfunded liability.
Annual pension payment is $6 million dollars to each fund, the Village has $80
million in each of the pension funds.
Actuarial data provides the Village the information staff needs for financial
forecasting.
Pension population: 178 police plan members and 165 fire plan members
The Village will not see the benefits of fire and police pension consolidation for
a few years. First phase was for the state to take over investments (done),
second phase is for state to take over administration of pensions that is 3-4
years out, and the third phase is to make a fund similar to the Illinois Municipal
Retirement Fund.
When sworn police and fire members change communities, they have the
option to transfer their pension to their new employer or maintain two separate
pensions (if they qualify).
Motion by Yulia Bjekic seconded by Don Ocwieja to approve the levy, abatement, and
budget recommendation as presented by staff.
Chair Chokshi called roll call vote.
Motion Carried unanimously.
V. New Business
None
VI. Any Other Business
None
VII. Chairperson’s Report
Commissioner Bjekic thanked her fellow commissioners, staff and everyone for the
pleasure and enriching experience while on the Commission.
Mr. Thakkar thanked Commissioner Bjekic for her contributions.
VIII. Finance Director’s Report
Finance Director Thakkar shared that the Elk Grove Rural Fire Protection District
(EGRFPD) matter came to a settlement and the Village will serve their district per the
agreement. The Village will receive the EGRFPD station and assets. EGRFPD will
ndst
receive the 2property tax installment this year and 1 installment this next year.
Staff will be proposing improvements to Station 11 through a 2023 budget amendment.
The building needs internet for dispatching and Comcast may take 3-4 months to install.
Staff would like to operate out of Station 11 as soon as possible. Village of Mount
Prospect, EGRFPD, and Elk Grove Township signed the agreement and court will have
enforcement on the document.
In response to questions from the Finance Commission, Mr. Thakkar stated Elk Grove
Village and City of Des Plaines will respond to the area per the prior intergovernmental
agreement. Also, annexation of remaining unincorporating areas is undetermined this
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point.
Mr. Thakkar provided and reviewed the Monthly Financial Report for September.
IX. Next Meeting:
Motion by Vince Grochocinski seconded by Yulia Bjekic to cancel the regular meetings
of the Finance Commission scheduled for November and December.
Chair Chokshi called roll call vote.
Motion Carried unanimously.
X. Adjournment:
Motion by Yulia Bjekic seconded by Kenneth Arndt to adjourn the meeting.
Chair Chokshi called roll call vote.
Motion Carried unanimously.
The meeting adjourned at 7:48 p.m.
Alexander Bertolucci
Assistant to the Village Manager
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