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Home My WebLink About10/14/2025 COW MinutesVillage of Mount Prospect Committee of the Whole Tuesday, October 14, 2025 / 6:00 PM CALL TO ORDER Mayor Hoefert called the Committee of the Whole meeting to order at 6:08 p.m. in the Board Room at Village Hall, 50 S. Emerson St. ROLL CALL Members present upon a roll call by the Village Clerk: Mayor Paul Hoefert, Trustee Vincent Dante, Trustee Beth DiPrima, Trustee Terri Gens, Trustee Bill Grossi, Trustee John Matuszak, Trustee Colleen Saccotelli Absent: None APPROVAL OF MINUTES 3.1. Minutes of the Committee of the Whole —August 12, 2025 Motion by Trustee Dante, second by Trustee Gens, to approve the minutes: Yea: Vincent Dante, Beth DiPrima, Terri Gens, Bill Grossi, John Matuszak, Colleen Saccotelli Nay: None Final Resolution: Motion Passed MAYORS REPORT 4.1. Mayor's Comment Mayor Hoefert said he had no further comments, except to look forward to the budget presentations, and noted that the 2026 budget is fiscally responsible. COMMUNICATIONS AND PETITIONS - CITIZENS TO BE HEARD None. DISCUSSION ITEMS 6.1 2026Annual Budget Workshop l Director of Finance Amit Thakkar presented the 2026 budget workshop to the Board. Mr. Thakkar began with the budget highlights: • The 2026 budget is balanced at $187.6 million in revenues and $192.4 million in expenditures, with a planned use of $4.8 million in cash from previously earned revenues • The budget includes a 0% increase in the property tax levy, maintaining it at the same dollar amount as the 2024 levy (payable in 2025) • The current levy is the lowest in 11 years, lower than in 2015 • Pension abatements total $2.9 million • Debt service levy abatements total $3.1 million • Pension costs are increasing by $5812275 • The Village is funding the actuarial amount to achieve 100% pension funding by 2040 • The Community Investment Plan (CIP) is greater than usual at $51.1 million due to grant - funded projects • Starting January1, 2026, the budget includes$925,000 in grocerytax revenue thatwas previously classified assales tax • The grocery tax revenue is earmarked for pension abatements Mr. Thakkar highlighted that the budget includes three new firefighters/paramedics, which will provide opportunities to reduce overtime and allow more room for training and time -off coverage. He noted that employee health insurance costs are increasing by 7.1 %, though the village's 5-year trend of 5.2% remains lower than the industry average of 7.3%. He then outlined key budget challenges, including: • Heavy reliance on State of Illinois intergovernmental revenues Increasing public safety pension costs • Legislative challenges including the 1 % grocery tax and pension updates • Rising construction costs and aging infrastructure • Increased vehicle replacement costs (up to 42% higher) with longer lead times • Issues with the Cook County property tax system • Shrinking federal and state grant programs Mr. Thakkar presented the 2026 revenue budget of $187.6 million, with the largest components being: • Intergovernmental revenue: $76.7 million (41 %) • Charges for services: $50 million (27%) • Property taxes: $25.5 million (14%) • Other locally levied taxes: $17.2 million (9%) He explained that without abatements, the property tax levy would be $25.7 million, which would be 41 % higher. Through various abatements totaling $7,347,483, including $5.1 million from the General Fund, the actual levy remains at $18,235,179 with no increase from the previous year. For a $400,000 home, the abatements mean maintaining village property taxes at $1,003 instead of increasing to $1,415, saving the average household $412. Mr. Thakkar presented major revenue sources, including: • State sales tax: $39.9 million l • Home rule sales tax: $8.1 million • State income tax: $9.9 million • Use tax: $1,09 million • Food and beverage tax: $2 million • Real estate transfer tax: $1.1 million • License and permit fees: $1.9 million • Ambulance billing fees: $4.07 million • Investment income: $3.26 million Mr. Thakkar noted the water and sewer charges would increase by 6.75% per the approved rate study, resulting in an average monthly bill increase of $7.41. Refuse rates would increase by 3.5%. For expenditures, the 2026 budget totals $192.4 million: • Operating budget: $102.6 million (53%) • CIP: $51.1 million (27%) • Debt service: $7.8 million (4%) • Internal service funds: $15.2 million (8%) • Special revenue: $2 million (1 %) • Special revenue TIF: $4.95 million (3%) • Interfund transfers: $8.75 million (4%) Personnel expenditures total $66.7 million, including the three new firefighter/paramedics, contractual wage increases, and a 3.5% increase for non -union employees. The total public safety pension cost is $11.8 million, with $2.9 million being abated. Mr. Thakkar handed the presentation over to the department heads, who then presented their individual budgets. Assistant Village Manager Alex Bertolutti presented the Public Representation budget: • The budget totals $799,407 (2.5% increase) with 95% allocated to contractual services and commodities/supplies. About 67% support community events and seasonal downtown decorations, including the Block Party, Fridays on the Green summer concerts, Shining Stars celebrations, the family bike ride, and holiday lights in the Pocket Park, and more. Mr. Bertolucci presented the Village Administration budget: • The department includes the Village Manager's Office, IT, HR, communications, marketing, PR, and Village Clerk's Office. The personnel budget shows a 6% increase due to wages and medical/dental insurance increases. Deputy Director of Finance Jenny Fitzgerald presented the budget for the Finance Department: • The department's budget totals $2,539,489 with a 2.1 % increase. It includes a decrease in banking fees and plans for a new financial ERP system, continuing to work on the AAA credit rating strategy, and watching state legislative agenda items that could affect pensions. l Director of Community & Economic Development Jason Shallcross and Director of Building & Inspections Bill Schroeder presented their respective budgets: • No change in headcount is planned for 2026. Economic development initiatives include the downtown parking study, comprehensive plan update, pilot valet parking and at fresco programs, gateway signage project, and high -profile redevelopment projects. Human Services, presented by Deputy Director Esther Salutillo: • The department's budget totals $1,741,760, a decrease of $42,005 (2.4%) due to the ending of American Rescue Plan funds. Personnel costs make up 81 % of the budget. Initiatives include implementing transit study recommendations, launching a post -incident reunification plan with police and fire, expanding the Pathway Forward mentorship program, and continuing work on the aging and community action plan. Police Department, presented by Chief Mike Eterno: • The department's budget totals $28.3 million, a 5% increase. It maintains 90 budgeted officer positions and 20 civilian support staff. Major budget components include personnel costs (86%) and contractual services (13%). The department plans to implement Flock cameras, purchase three indoor drones, expand outdoor beat meetings, add a fourth officer to the Special Response Team, and possibly establish a traffic unit if staffing levels permit. Trustee Matuszak inquired about reestablishing a traffic unit. Chief Eterno explained that they previously had such a unit (2006-2010) with a sergeant and four officers but would need to reach full staffing of 90 officers before implementing it. Chief Eterno suggested possibly starting with two officers in 2026 and evaluating the need for expansion later. Fire Department, presented by Chief Tom Wang: The department's budget includes hiring three new firefighter/paramedics, increasing the total to 84 sworn personnel. The budget shows a $1.3 million increase in personnel costs, but the Chief explained that the new hires would actually help decrease overtime costs. The department faces challenges with rising vehicle costs and extended delivery times, with a new tower apparatus delayed until January/February 2026 and future engine replacements taking up to three years to receive. Public Works Department, presented by Director Sean Dorsey: The department's budget totals approximately $33.5 million, with water and sewer being the largest component ($15.2 million). The budget includes expenditures for purchasing water from Chicago ($8.6 million), refuse collection, and street and building maintenance. Major initiatives for 2026 include updating the stormwater master plan, developing a new neighborhood flooding strategy, continuing the Fairview Gardens sewer project, and preparing for the Rand/Kensington/Elmhurst Road intersection project. Mr. Thakkar concluded by reviewing debt service ($7.8 million), business district funds ($2.029 million), TIF districts, internal service funds, and general fund reserves. He noted that the general l fund balance is projected to be $44.9 million by the end of 2025, which is 52% of the annual budget and well above the 30-50% policy target. Mayor Hoefert asked about the Local Government Distributive Fund (LGDF), and Mr. Thakkar explained that the state originally agreed to give municipalities 10% of state income tax collections but reduced this to 6.2% in recent years, significantly impacting local revenues. The timeline for budget approval includes: • Finance Commission meeting on October 23rd • First reading of budget ordinances on October 28th • Public hearings and final approval on November 18th Mayor Hoefert provided brief closing remarks. No additional discussion. VILLAGE MANAGER'S REPORT Village Manager Mike Cassady announced that the next Board meeting would be on October 28tn. The October 28th meeting would include the first reading of the budget and review of the CloudHQ planned unit development ordinance amendment. No additional business. ANY OTH E R BUSI N ESS ADJOURNMENT With no additional business to conduct, Mayor Hoefert asked for a motion to adjourn. Trustee Grossi, seconded by Trustee Dante, motioned to adjourn the meeting. By unanimous voice vote, the October 14, 2025, Committee of the Whole meeting adjourned at 8:37 p.m. Respectfully submitted, Karen M . Ago ra n os Village Clerk