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HomeMy WebLinkAbout02/22/2024 FC MinutesFINANCE COMMISSION iY mnt Thn±��xsct MEETING MINUTES Thursday, February 22, 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, Pam Bazan, Vince Grochocinski and Don Ocwieja Commission members absent: Edward Derfler Staff present: Director of Finance Amit Thakkar and Deputy Director of Finance Jennifer Fitzgerald. II. Approval of Minutes a. Motion by Ken Arndt seconded by Vince Grochocinski to approve the minutes of the Finance Commission special meeting of January 25, 2023. Chair Chokshi called a voice vote. Motion Passed unanimously. III. Citizens to be Heard None IV. Old Business Finance Director Amit Thakkar discussed the work plan for the coming year. Commission Chair Chokshi asked if there were any additions. No edits were suggested. Motion for approval of the work plan was made by Commissioner Grochocinski and seconded by Commissioner Arndt. Approved unanimously. V. New Business a) Finance Director Thakkar provided pension updates. The fiscal year 2022 was not a good year for investment returns and the Village reported significant investment losses (unrealized). The pension funding ratio went down from 70% to 54% during 2022.2023 investment performance came out better than expected. Finance Director provided financial statements for both pension funds. He mentioned that the Fire Pension Fund made 14.6% while the target was 6.75%. The police pension fund made 12.8% while target was 7%. Unfunded liability number will come in April when the actuary report is completed. Finance Commissioners asked about various questions involving state legislative updates and changes in the surviving spouse pension benefits and Mr. Thakkar provided answers to those questions. 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. b) Finance Director also provided updates on the Elk Grove Rural Fire Protection District. Finance Commission Page 1 of 2 1/25/2024 The fire district went out of business in October 2023. The Village and Elk Grove Township filed a suit in the court and all parties agreed to a court -supervised settlement agreement. The settlement agreement provided building and all assets to the Village in return of Fire and EMS services to the unincorporated area through July 2024. The Settlement agreement also asks to transfer all excess funds to the Village. The Special Service Area is already adopted by the Village and will collect $1.0 million in levy starting year 2025. The Village currently is serving along with Elk Grove Village and City of Des Plaines. The are that the Village is responsible (willow -way mobile home park) generates 52 calls. Additionally, when the Village responds on a tollway, the tollway reimburses $500 per call. There is a referendum on the ballot for March for the rural dissolution. If the referendum failed, the Village will have to chose a legislative route. Currently, the Village acquired the fire station 11 and is working on its renovation plans. c) Finance Director Thakkar also provided updates on the monthly financial report for the month of December and discussed cash balances, revenues, expenses and fund balances for the Village. Financial report was reviewed from December 2023 with the understanding that it does not include accrual and year end entries. Unaudited fund balance was reported at $38.9 million and was 45% of the annual budget. Real estate transfer tax was at 60% of what it was in 2022. VI. Any Other Business None VII. Chairperson's Report None VIII. Finance Director's Report None IX. Next Meeting: March 28, 2024 X. Adjournment: Motion by Commissioner Ocwieja seconded by Kenneth Arndt to adjourn the meeting. Chair Chokshi called roll call vote. Motion Carried unanimously. The meeting adjourned at 7:50 p.m. Finance Commission Page 2 of 2 1/25/2024