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HomeMy WebLinkAbout04/21/2026 VB/COW Minutes Village of Mount Prospect Regular Meeting of the Village Board/Committee of the Whole Tuesday, April 21, 2026 / 7:00 PM CALL TO ORDER MayorHoefertcalledtheRegularMeetingoftheVillageBoard/CommitteeoftheWholetoorder at 7:16 p.m. in the Board Room at Village Hall, 50 S. Emerson St. ROLL CALL Members present upon roll call by the Village Clerk: Mayor Paul Hoefert, Trustee Vincent Dante, Trustee Beth DiPrima, Trustee Terri Gens, Trustee Bill Grossi, Trustee John Matuszak, and Trustee Colleen Saccotelli Absent: None Mayor Hoefert announced a quorum was present. 2.1. Pledge of Allegiance - Trustee John Matuszak APPROVAL OF MINUTES 3.1. Minutes of the regular meeting of the Village Board - April 7, 2026 Motion by Vincent Dante, second by Colleen Saccotelli to approve the minutes of the regular Village Board meeting of April 7, 2026: 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 No comment. 4.2. PROCLAMATION: Earth Day - April 22, 2026 Mayor Hoefert read a proclamation recognizing April 22, 2026, as Earth Day in the Village of Mount Prospect. The proclamation highlighted ongoing environmental threats and noted that this year marks the 56th anniversary of the Earth Day movement, with the theme "Our Power, Our Planet." The Mayor encouraged all citizens to combat climate change, support green economy initiatives, and promote a plastic-free planet. 4.3. PROCLAMATION: Arbor Day - April 24, 2026 Mayor Hoefert read a proclamation designating Friday, April 24, 2026 as Arbor Day in the Village of Mount Prospect. The proclamation recognized the history and importance of tree planting and noted that a ceremonial tree planting would be held at Fairview School, 300 North Fairview Avenue, on Friday, April 24, 2026 at 10:00 AM. The Mayor encouraged all residents to attend. Director of Public Works Sean Dorsey accepted the proclamation and provided additional details, noting the planting would take place on the Isabella side of Fairview School, where a new swamp white oak would be planted in the parkway. The event is open to the public. Mayor Hoefert asked Director Dorsey to speak about the strength of the Village's forestry program. He noted the division employs approximately a dozen staff, including Superintendent Dave Hull who holds a college degree in urban forestry. All but three employees are certified arborists. The Village maintains approximately 25,000 parkway trees, removing and replacing roughly 300–500 trees annually due to disease, decay, or old age. The Village has been recognized as a Tree City USA community for 41 consecutive years and has received the Tree City USA Growth Award for 20 consecutive years. This year marks the Village's 42nd Arbor Day celebration. Trustee Saccotelli commended the Public Works Department and noted the recently completed Gateway Park at Central and Northwest Highway as a particularly attractive improvement. Public Comment: Steve Polit 601 Wilshire Informed the Board that a community cleanup event at Hill Street Park on Rand Road was also scheduled for the following day, and invited residents to participate. 4.4. REAPPOINTMENT TO BOARDS AND COMMISSIONS - Board of Fire and Police Commissioners | William Knee for term to expire April 2029, Special Events Commission | Katie Cousino for term to expire April 2030; Denise Peterson for term to expire April 2030; Alan Cervenka for term to expire April 2030 Mayor Hoefert presented the following reappointments for ratification: Board of Fire and Police Commissioners: William Knee -term to expire April 2029 Special Events Commission: Katie Cousino - term to expire April 2030; Denise Peterson, term to expire April 2030; Alan Cervenka, term to expire April 2030 Motion by Vincent Dante, second by Terri Gens, to ratify the reappointments: Yea: Vincent Dante, Beth DiPrima, Terri Gens, Bill Grossi, John Matuszak, Colleen Saccotelli Nay: None Final Resolution: Motion Passed COMMUNICATIONS AND PETITIONS - CITIZENS TO BE HEARD No citizens registered to address the Village Board under this item. CONSENT AGENDA Motion by Vincent Dante, second by John Matuszak, to approve the consent agenda: Yea: Vincent Dante, Beth DiPrima, Terri Gens, Bill Grossi, John Matuszak, Colleen Saccotelli Nay: None Final Resolution: Motion Passed 6.1. List of Bills - April 1, 2026 to April 14, 2026 - $3,142,862.92 6.2. Motion to waive the rule requiring two readings of an ordinance and adopt an ORDINANCE AMENDING CHAPTER 13 (ALCOHOLIC LIQUORS) OF THE VILLAGE CODE OF MOUNT PROSPECT. This Ordinance will decrease the number of Class “F-3” Licenses by (1) Blazin Wings Inc. d/b/a Buffalo Wild Wings located at 301 E Euclid Ave. Mount Prospect, IL and will decrease the number of Class “F-2” Licenses by (1)Three Craftmen Inc. d/b/a E-Sushi located at 1750 W. Golf Rd. Mount Prospect, IL. This Ordinance will increase the number of Class “F-3” licenses by (1) Mount Prospect Wing Company d/b/a Buffalo Wild Wings located at 301 E Euclid Ave. Mount Prospect, IL and increase the number of Class “F-2” Licenses by (1) CHICAGO KAZE INC. d/b/a E- Sushi located at 1750 W. Golf Rd. Mount Prospect, IL; Ordinance No. 6843 6.3. Waive the rules requiring two readings of an ordinance and adopt AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2025, AND ENDING DECEMBER 31, 2025. Ordinance No. 6844 6.4. Waive the rules requiring two readings of an ordinance and adopt AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2026, AND ENDING DECEMBER 31, 2026. Ordinance No. 6845 OLD BUSINESS - None NEW BUSINESS - None VILLAGE MANAGER'S REPORT 9.1. As submitted The Village Manager indicated no additional report. COMMITTEE OF THE WHOLE - JOINT VILLAGE BOARD AND FINANCE COMMISSION WORKSHOP The meeting transitioned to a hybrid Committee of the Whole session, convened as a joint workshop with the Finance Commission. Finance Commission Chair Ken Arndt called the roll of the Finance Commission, confirming the presence of four commissioners: Commissioner Rath, Commissioner Grochocinski, and Commissioner Ocwieja, Commissioners Derfler, Cannizzaro and Khamo were absent. 10.1. 1st Quarter 2026 - Financial Review Finance Director Amit Thakkar presented the unaudited full-year 2025 financial results and the first quarter 2026 financial review. 2025 Year-End Highlights Director Thakkar identified several challenges encountered during 2025, including a delayed second installment of Cook County property taxes. He reported that 98% of property taxes were ultimately collected by the February 28 accounting deadline, with the remainder arriving in March. Other challenges included inflationary cost pressures on supplies and contractual services, the expiration of $7,027,000 in federal ARPA pandemic relief funds, and pending state legislation (Senate Bill 1937) that, if enacted, would significantly increase the Village's Tier 2 pension liabilities and place upward pressure on the property tax levy. Despite these challenges, Director Thakkar highlighted a number of positive outcomes for 2025: Sales tax collections totaled $44,200,000, reflecting 17.7% growth and elevating Mount Prospect to the third-largest sales tax producer in Illinois. Home Rule sales tax grew 18.9% to $9,200,000, largely due to a change in state law requiring out-of-state sellers to remit destination-based sales tax rather than use tax. Income tax collections reached $10,200,000, or $180.34 per capita, a 6.2% increase over the prior year, surpassing the initial Illinois Municipal League estimate of $169 per capita. Investment income reached $5,914,199, well above the original budget estimate of $3,900,000, due to interest rates remaining higher than anticipated. Village-wide revenues were collected at or above budget in nearly all categories, with intergovernmental revenues at 115%, investment income at 150%, and property taxes at 108%. Expenditures came in at $145,029,949 Village-wide, representing 78.8% of the $183,900,000 budget, with all departments remaining within appropriate limits. Property tax levy remained unchanged from the 2015 level, representing a 0% increase. The Village abated $5,100,000 in pension and debt obligations. The Elk Grove Rural Fire Protection District Special Service Area levy generated $665,000 in recognized revenue through February 28. The Village successfully received $1,031,000 in assets from the Elk Grove Rural Fire Protection District settlement agreement. Police and fire pension funds both reported approximately 17% investment returns against a 7.25% benchmark assumption, improving the police pension funding ratio from approximately 59% to 66.4%, and the fire pension funding ratio from approximately 60% to 69.6%. The Village retained its Triple Crown Award for excellence in financial reporting. General Fund Balance The unaudited general fund balance at year-end 2025 was $54,762,593, representing 63.9% of the annual budget when accounting for a $5,000,000 loan to the TIF fund for the acquisition of 111 East Busse Avenue. The Village's fund balance policy targets a range of 30–50% of annual expenditures with a 40% target. Cash balance at December 31, 2025, was $33,572,719, reflecting the timing lag of property tax collections and state revenue distributions. Q1 2026 Results Total revenues collected in Q1 2026 were $19,800,000, compared to $31,300,000 in Q1 2025. Director Thakkar explained that the primary driver of this $11,500,000 reduction was the delayed first installment of 2025 property taxes: only $1,065,000 had been collected against a full-year budget of $25,500,000, compared to $12,500,000 collected in the same period last year. All other revenue categories were generally within expected ranges. Real estate transfer tax collections were notably higher in Q1 2026 at $530,000 versus $175,000 in Q1 2025, due to several high-value transactions. Income tax receipts grew 3.9% to $2,526,000. Q1 2026 expenditures totaled $27,400,000, or 13.1% of the annual budget. Personnel costs appeared lower than expected due to pension contributions not yet being remitted, as those payments are dependent on property tax collections and will be corrected in Q2. Commodity and supply expenditures were 71.5% higher than the same period last year, driven by a more severe winter requiring greater salt usage and higher fuel prices. All other expenditure categories remained within expected ranges. The Q1 2026 fund balance stood at $45,032,605, or 49.6% of the annual budget, reflecting a net operating deficit in the quarter attributable to the property tax timing lag. Economic Emergency Fund The Economic Emergency Fund, established in 2023 from general fund surpluses with two installments of $6,500,000 each, has grown to $14,500,000 as of the end of Q1 2026, having accumulated $1,455,811 in interest income. No funds have been withdrawn. Director Thakkar noted that accessing the fund is subject to formal review by the Finance Commission and approval by the Village Board. 2026 Work Plan Director Thakkar outlined the Finance Department's work plan for the remainder of 2026, which includes potential bond issuances, possible establishment of a third installment into the Economic Emergency Fund following completion of the 2025 audit, and continued work on pension levy and abatement strategy. The department is also actively pursuing a AAA bond rating, which would reduce future borrowing costs. Director Thakkar noted that while the Village meets nearly all rating agency criteria, pension funding ratios and median household income remain areas of focus. He expressed optimism that a revised pension funding strategy, currently under development with the Village's actuary, would be presented to the Finance Commission and Village Board in the coming months. Board and Commission Discussion HighlightedthesignificanceofMountProspect'sstrongsalestaxeconomy Praised the Finance Department and Finance Commission for their stewardship and the quality of the financial reports, and expressed confidence that the Village could achieve a AAA bond rating. Director Thakkar confirmed that the Village is checking nearly every box required by rating agencies, with pension funding strategy remaining the primary outstanding criterion. Inquired about the increase in overtime spending in Q1 2026. Director Thakkar responded, attributing the increase to cost-of-living adjustments under collective bargaining agreements and operational gaps created by retirements or workers' compensation absences. Questioned the decline in investment income compared to 2024. Director Thakkar explained the reduction reflects a combination of modestly lower interest rates and a decrease in investable cash balances as bond proceeds are expended on capital projects. Sought clarification on whether the delayed property tax receipts caused any missed pension payment deadlines. Director Thakkar confirmed that no deadlines were missed, but noted an opportunity cost in the form of lost investment income for the Village and the pension funds, which had forgone the benefit of investing those contributions earlier. Finance Commission Chair Arndt offered closing remarks on behalf of the Finance Commission, commending the Finance team and emphasizing two priorities: continued progress on the pension funding strategy—an area where many peer communities have fallen short—and the importance of maintaining and strengthening the Economic Emergency Fund, particularlyduring periods of strong revenue when the impulse to increase spending can be greatest. Mayor Hoefert closed the discussion by noting the Village's financial condition is the strongest it has ever been and underscored the importance of fiscal discipline during prosperous times. ANY OTHER BUSINESS Mayor Hoefert noted the presence of an Eagle Scout candidate from Troop 23 attending the meeting to fulfill requirements for his Citizenship in the Community merit badge. In response to a Board question about whether there was a rain date for the Arbor Day ceremony, Director Dorsey confirmed that there is no formal rain date and that the event would move to the school gymnasium if the weather warranted it. 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 April 21, 2026, Regular Meeting of the Village Board/Committee of the Whole meeting adjourned at 8:21 p.m. Respectfully submitted, Karen M. Agoranos Village Clerk