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Home My WebLink About08/22/2024 FC MinutesFINANCE COMMISSION v Mcx'nt i'n)sPect MEETING MINUTES Thursday, August 22, 2024 Executive Conference Room — 3 d Floor, Village Hall Mount Prospect, IL 60056 Call to Order The meeting was called to order at 6:01 p.m. Commission members present: Trisha Chokshi, Vince Grochocinski, Don Ocwieja and Edward Derfler Commission members absent: Commissioner Ken Arndt and Pam Bazan Staff present: Director of Finance Amit Thakkar, Deputy Director of Finance Jennifer Fitzgerald, Director of Public Works — Sean Dorsey and Jason Leib — Deputy Director of Public Works Approval of Minutes a. Motion by Edward Derfler, seconded by Vince Grochocinski, to approve the minutes of the Finance Commission meeting of June 27, 2024. Chair Chokshi called a voice vote. Motion Passed unanimously. III. Citizens to be Heard None IV. Old Business None V. New Business a) Q2-2024 Financial Review Finance Director Thakkar provided a Q2-2024 financial review. The review included that during q2-2024, the Village concluded its strategic planning as well as the annual audit, provided revenue, expenditure, and fund balance updates, as well as talked about the performance of pension funds. Q2-2024 revenue totaled $32.3 million, $10 million less than Q2-2023., mainly due to timing issues with the property tax payments. YTD revenues for 2024 totaled $62.5 million vs. $64.5 million for 2023, mainly due to the Economic Emergency Fund payment being executed in July 2024 vs. June 2023. The Village expenditures totaled $33.8 million in Q2-2024 vs. $39 million in Q2-2023, mainly due to the timing of transfer outs from the General Fund. Personnel expenditures totaled $29.4 million or 48.2 percent of the annual budget. Contractual services were $17.6 million or 43.6 percent of the budget. Commodities and supplies were $1.2 million or 44.1 percent of the budget. The Village executed debt service totaling $2.2 million on June 1, and other expenditures include $774,391 for property acquisition and $613,085 for developer's TIF incentives. The Pension Funds reported positive net income totaling $4.8 million for the Police Pension Fund and $3.7 million for the Fire Pension Fund. The General Fund reserves were at $44.2 million at the end of June 2024, equating 48% of the annual expenditures. He concluded his remarks about the robust and strong local economy; the Village is expected to collect $36.0 million in sales tax and $7.2 million in home rule sales tax. The Finance Commission had questions about legislative changes and grocery taxes, Finance Commission Page 1 of 3 1/25/2024 and Director Thakkar mentioned that the item would be handled during the 2026 budget review in late 2025. b) Community Investment Plan Director Thakkar presented a CIP presentation for a five-year CIP plan. He mentioned that the five- year CIP totaled $177.8 million. Of this amount, $125.8 million includes reoccurring projects and $52.0 million in one-time projects. The 5 -year CIP includes $166.5 million in public works projects, $4.5 million in human services, $1.2 million in Village Manager's Office, $1.9 million in Community, $1.9 million in Community and Economic Development, $1.8 million in Fire Department and $1.8 million in Police Department items. He further mentioned that the immediate year is our focus, and 2025 CIP totaled $31.5 million. 2025 CIP includes $13.4 million in streets, $8.2 million in water system improvements, $2.3 million in sanitary sewer projects, $4.2 million in fleet and equipment, and the remaining amount is for other items. The Water and Sewer Fund will fund $9.9 million, while the Capital Improvement Fund will provide funding of $4.8 million. The Street Construction Fund and the Motor Fuel Tax will provide funding totaling $5.2 million and $1.6 million, respectively. Director Thakkar further mentioned that out of all the strategic planning goals, the Village will be spending $25.8 million for Top-quality Village Infrastructure. Director Thakkar informed further about a few specific projects and items including $600,000 for Gateway Sign, $300,000 for bodycams and $674,000 for cardiac monitors for the Fire Department. The Director of Public Works — Sean Dorsey handled the remaining portion of the presentation. He talked about significant projects, including the water system - $7.6 million; sanitary sewer, $1.8 million; and street resurfacing totaling $8.5 million. He further reviews Phase II bike path improvements at Kensington and Central Rd, Busse Road Construction Project, 310 W Northwest Highway - Central Road Gateway project, as well as the Rand -Kensington -Elm Hurst road intersection improvement project. Finally, Director Dorsey concluded his presentation with the amount of vehicles that the Village will replace next year as part of the CIP. The Finance Commission had several questions about specific projects for the gateway sign, Busse road construction, and 310 W Northwest Highway. Director Dorsey and Thakkar answered those questions based on the available information. c) TIF Updates Director Thakkar provided TIF updates about the Prospect & Main TIF as well as the South Mount Prospect TIF. The Prospect & Main TIF started in 2017, in its seventh year now. The current increment from TIF district is $4.4 million. The South Mount Prospect TIF started in 2022, and current increment is $798,000. The Prospect & Main TIF has several major projects and has contributed significant amounts in TIF. The Village has three bond issuances, totaling $20.0 million and used for various projects in downtown including the construction of the Maple Street Garage. There are several new restaurants with the TIF incentives and more are coming. Part of the increment has to be declared as a surplus and the latest amount was $636,000. Director Thakkar showed the annual report that was filed with the State Comptroller's Office and gave a rundown of the audited financials for both the TIF districts. VI. Any Other Business None Finance Commission Page 2 of 3 1/25/2024 VII. Chairperson's Report None VIII. Finance Director's Report None IX. Next Meeting: September 26, 2024 — Budget Session X. Adjournment: Motion by Commissioner Grochocinski, seconded by Don Ocwieja, to adjourn the meeting. Chair Chokshi called a voice vote. The motion was carried unanimously. The meeting adjourned at 8:02 p.m. Minutes Prepared by: Amit Thakkar (Director of Finance) Jennifer Fitzgerald (Deputy Director of Finance) Finance Commission Page 3 of 3 1/25/2024