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HomeMy WebLinkAbout01/25/2024 FC MinutesFINANCE COMMISSION iY mnt Thn±��xsct MEETING MINUTES Thursday, January 25, 2024 Executive Conference Room — 31d Floor, Village Hall Mount Prospect, IL 60056 Call to Order Meeting called to order at 7:01 p.m. Commission members present: Kenneth Arndt, 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. II. Approval of Minutes a. Motion by Vince Grochocinski seconded by Edward Derfler to approve the minutes of the Finance Commission special meeting of October 26, 2023. Chair Chokshi called a voice vote. Motion Passed unanimously. III. Citizens to be Heard None IV. Old Business None V. New Business a) Selection of Vice -Chair Motion by Kenneth Arndt, second by Vince Grochocinski to nominate Edward Derfler as Vice -Chair. Chair Chokshi called a voice vote. Motion Passed unanimously. b) Selection of Secretary Motion by Kenneth Arndt, second by Edward Derfler to nominate Vince Grochocinski as Secretary. Chair Chokshi called a voice vote. Motion Passed unanimously c) 2024 Work Plan Director of Finance Amit Thakkar shared and reviewed the proposed 2024 work plan. He stated the work plan will be finalized at the next meeting. There was general discussion on the proposed schedule based on eight meetings this year with May and July meeting topics to be determined. If there are worthy items, then we can hold those meetings. Mr. Thakkar responded to questions from the Finance Commission: Finance Commission Page 1 of 3 1/25/2024 A lawsuit was filed in Kane County challenging if the fire and police pension consolidation legislation by the state is unconstitutional. The Illinois Supreme Court rule it is constitutional. The goal is to have fire and police pension funds be structured and operate similarly to the Illinois Municipal Retirement Fund. Staff can conduct a review of resident/user fees through the annual budget process. There was general discussion regarding Police and Fire pension benefits and possible legislation that would enrichen tier 2 pensions benefits. Pensions is the most critical issue now and a focus for 2024. d) Financial Updates/Monthly Report Mr. Thakkar provided November's Monthly Financial Report and gave an overview of noteworthy items. Revenues are as expected. Higher capital spending as projects are catching up from supply challenges. Mr. Thakkar responded to questions from the Finance Commission: • Hopeful the Village will experience a surplus in revenue again. • If the Village was a AAA bond rated community, we would save around 15-20 basis points. For example, on a $70-80 million bond the Village would save $9-10 million in interest over 20 years. • S&P. Moody's and Fitch are the rating agencies. The Village has to pay the agencies for the rating process. VI. Any Other Business None VII. Chairperson's Report None VIII. Finance Director's Report Mr. Thakkar presented a property tax assessment issue regarding the Maple Street Lofts property that was completed in 2021. The property assessment was not completed in a timely manner by the county, so it was omitted from Prospect and Main TIF district's tax process. The increment tax revenue generated from the property was distributed taxing bodies based on their tax rates. It is a one-time loss to the TIF district of $1.9 million. Mr. Thakkar responded to questions from the Finance Commission: • Staff works with developers to ensure they are reporting completed projects to the County's Assessor's Office in a timely manner. The required documents were submitted in a timely manner but were not processed by the County in a timely manner for Maple Street Lofts. • The property tax error does not affect the individuals living in the building. • The Village requires reporting the development to the county as part of the occupancy process. • Revenues are coming significantly higher, good occupancy ratio, and they are paying their due taxes. Finance Commission Page 2 of 3 1/25/2024 IX. Next Meeting: February 22, 2024 X. Adjournment: Motion by Vince Grochocinski seconded by Kenneth Arndt to adjourn the meeting. Chair Chokshi called roll call vote. Motion Carried unanimously. The meeting adjourned at 7:51 p.m. Alexander Bertolucci Assistant to the Village Manager Finance Commission Page 3 of 3 1/25/2024