HomeMy WebLinkAbout07/21/2026 VB MinutesVillage of Mount Prospect Regular
Meeting of the Village Board
Tuesday, July 21, 2026 / 7:00 PM
CALL TO ORDER
Mayor Hoefert called the Regular Meeting of the Village Board to order at 7:03 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 Terri Gens*, Trustee Terri Gens, Trustee Bill Grossi, Trustee John Matuszak, Trustee Colleen
Saccotelli
Absent: None
A quorum was present.
* Trustee Gens left the meeting at 9:57 p.m.
2.1. Pledge of Allegiance - Led by Trustee John Matuszak
APPROVAL OF MINUTES
3.1. Minutes of the regular meeting of the Village Board -July 7, 2026
Motion by Vincent Dante, second by Terri Gens, to approve the minutes of the regular Village Board
meeting of July 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
Mayor Hoefert mentioned that the Downtown Block Party in Mount Prospect will be taking place
this weekend and encouraged all residents to attend.
4.2. ACCOLADES- Congressional Award Gold Medal recipient John Ciok
Mayor Hoefert recognized John Ciok, a senior at Prospect High School, for earning the
Congressional Award Gold Medal —the highest honor the United States Congress awards to
civilian youth. John was honored at the Gold Medal Summit in Washington, D.C. In addition to his
award -related accomplishments, John volunteered with Blood Cancer United, Prospect High
School's Associated Student Body program, and Feed My Starving Children, served as a U.S.
Senate Page, and currently interns for State Representative Nicole Grassi. He also raised
$69,359 for the Leukemia and Lymphoma Society and received that organization's Advocacy Mission
Pillar Award and its Shining Star Award for exceptional youth.
Members of the Board each offered brief remarks commending John's achievements, leadership,
and the strong family support that made his accomplishments possible.
4.3. Annual Report of the Audit Committee and Acceptance of the 2025Annual
Comprehensive Financial Report (Audit) for the Village of Mount Prospect
Finance Commission and Audit Committee Chair Vince Grochocinski presented the annual audit
report. He reported that the Village received the highest possible clean, unqualified opinion on its
financial statements, prepared by Village staff and audited by the firm of Lauterbach &Amen. The
management letter contained no findings of material consequence, with the auditors' principal
observations relating to upcoming changes in financial statement preparation standards from the
Governmental Accounting Standards Board.
Chair Grochocinski highlighted several key financial results for the year. Revenues were up
significantly across the board, enabling the Board to refrain from raising the real estate tax levy for
multiple consecutive years. The general fund increased by $13.8 million, and all departments
came in at or below budget. The Economic Emergency Fund continued to grow substantially. He
noted that the Police and Fire Pension Funds, while on a trajectory toward 100 percent funding,
face a moving target as the State of Illinois continues to expand pension benefits for public safety
personnel.
Chair Grochocinski also noted that the Village's auditors are in their final year of engagement, as
the Village rotates auditors, and that the Audit Committee will conduct an interview and selection
process for a new firm. He further emphasized that the Village is one of only 513 communities
nationwide to receive the "Triple Crown" award for financial reporting from the three major
governmental financial reporting organizations.
Finance Director Amit Thakkar acknowledged his team's contributions, noting that the audit is a
six-month cyclical process running from December through June, with preliminary fieldwork
typically beginning in December and full fieldwork occurring over two to three weeks in April and
May.
Board comments:
• Highlighted the significance of not having raised the property tax levy
• Emphasized that the audit encompasses year-round transaction -level review, and
commended the Finance Department's discipline in staying within budgets and
anticipating revenues conservatively.
• Encouraged residents to read the Annual Comprehensive Financial Report and the
Village's annual budget and strategic plan, noting these documents provide a
comprehensive picture of the community's financial health
• Extended congratulations to Finance Director Thakkar, Deputy Director of Finance
Jenny Fitzgerald, and the entire Finance Department staff.
Village Manager Mike Cassady also expressed appreciation to the Finance team for sticking to
fundamentals and thanked the Audit Committee and Finance Commission.
Motion by Bill Grossi, second by Colleen Saccotelli, to accept the 2025 Annual Comprehensive
Financial Report for the Village of Mount Prospect:
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
Pat Rubino
Mount Prospect resident
• Addressed the Board to raise awareness about an upcoming Community Consolidated
School District 214 public meeting regarding a potential $450 million bond referendum.
• Expressed concern about the low level of public awareness and participation in local
taxing body meetings, noting that while the Village's finances are strong, residents
continue to see their overall property tax bills rise due to levies from other taxing bodies
such as school districts and park districts.
Carol Martz
Mount Prospect resident
• She indicated she had intended to comment on Consent Agenda Item 6.5 (Student
Resource Officer IGA), but was informed it would be pulled for separate discussion and
agreed to reserve her comments for that portion of the meeting.
CONSENTAGENDA
Trustee DiPrima moved to pull Items 6.5 and 6.6 from the Consent Agenda for separate discussion.
Mayor Hoefert announced that items 6.5 and 6.6 are removed from the consent agenda vote and
will be presented and voted upon separately.
Motion by Colleen Saccotelli, second by Vincent Dante, to approve the Consent Agenda, excluding
Items 6.5 and 6.6:
Yea: Vincent Dante, Beth DiPrima, Terri Gens, Bill Grossi, John Matuszak, Colleen Saccotelli
Nay: None
Final Resolution: Motion Passed
6.1. Monthly Financial Report -May 2026
6.2. List of Bills - July 1, 2026, to July 14, 2026 - $3,631,822.07
6.3. A RESOLUTION WAIVING CERTAIN NON-REFUNDABLE VILLAGE BUILDING PERMIT,
INSPECTION, AND ZONING APPLICATION FEES FOR THE VIDEO SCOREBOARD
PROJECT AT PROSPECT HIGH SCHOOL FOR PROPERTY LOCATED AT801 WEST
KENSINGTON ROAD, MOUNT PROSPECT, ILLINOIS
Resolution No. 15-26
6.4. Motion to approve the Closed Session minutes of June 16, 2026, and July 7, 2026.
6.5. Motion to Renew Student Resource Officer CCSD59 Intergovernmental
Agreement with the Village of Mount Prospect.
REMOVED FROM THE CONSENTAGENDA FOR SEPARATE DISCUSSION
6.6. A RESOLUTION APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM YEAR 2026 ACTION PLAN
REMOVED FROM THE CONSENTAGENDA FOR SEPARATE DISCUSSION
6.5. Motion to Renew Student Resource Officer CCSD59 Intergovernmental Agreement with the
Village of Mount Prospect
Deputy Police Chief BartTweedie presented the renewal of the intergovernmental agreement
(IGA) with Community Consolidated School District 59 for the Student Resource Officer (SRO)
program at Holmes Junior High School. He reported a successful 2025-2026 schoolyear,
highlighting the SRO's work in building rapportwith at-riskyouth, delivering preventative
education on substance abuse, pedestrian safety, online safety, railroad crossings, gang
resistance, and assisting Robert Frost South Elementarywith redesigning its traffic pattern for
safer drop-off and pick-up operations.
Deputy Chief Tweedie explained that the renewal includes new requirements mandated by Senate
Bill 1519, signed into law by Governor Pritzker in August 2025. These requirements include:
additional SRO training focused on workingwith students with disabilities; a ban on SROs issuing
citations or tickets to students as school disciplinary actions; procedures for documenting student
referrals to police; an annual SRO evaluation framework emphasizing problem -solving, prevention,
alternatives to arrest, and de-escalation; joint goal -setting between the Superintendent and Chief
of Police; and a community feedback and grievance resolution process. The salary schedule was
also revised to reflect current costs.
Board Comments:
• Trustee DiPrima, who requested the item be pulled, spoke from her experience as a
former educator about the value of SROs both for safety and student connection, noting
that students often preferred speaking with the SRO over administrators.
• Shared positive feedback from the principal of Holmes and referenced the SRO's
constructive work with students in the school's autism program.
• Noted that District 59 had approached the Village to establish the program, and that the
updated IGA largely codifies existing practices now required by state law.
• Overall support for the program was expressed.
Public Comment:
Ronak McFadden
Mount Prospect resident
• Referenced a previous incident involving a School Resource Officer at Holmes Junior
High and inquired about how parents are informed of such matters.
Deputy Chief Tweedie acknowledged he could not discuss personnel matters publicly.
Carole Martz
Mount Prospect resident
• Said the presence of social workers has also brought order to schools, not just SROs.
• Raised concern regarding the incident at Forest View, in addition to the incident raised by
Ms. McFadden.
Mayor Hoefert provided closing remarks and affirmed that personnel matters are handled
privately and expressed continued strong support for the program.
Motion by Bill Grossi, second by Colleen Saccotelli, to renew the Student Resource Officer
intergovernmental agreement with Community Consolidated School District 59:
Yea: Vincent Dante, Beth DiPrima, Terri Gens, Bill Grossi, John Matuszak, Colleen Saccotelli
Nay: None
Final Resolution: Motion Passed
6.6. A Resolution Approving the Community Development Block Grant Program Year 2026 Action
Plan
Director of Community and Economic Development Jason Shallcross presented the CDBG
Program Year 2026 Action Plan. He provided background on the Village's entitlement community
status, noting that the Village has received annual CDBG allocations from HUD since 1981 and
typically receives between $250,000 and $300,000 per year. Total funding for Program Year 2026,
combining the annual grant, program income from repaid rehabilitation loans, and carryover
funds, amounts to just under $400,000. HUD caps public service expenditures at 15 percent of
total funds, yielding approximately $60,000 available for public service and homeless services
activities combined.
Director Shallcross described the application and review process, which includes solicitation of
applications, staff evaluation, a public hearing before the Planning and Zoning Commission, and
final Village Board approval. He identified the primary funding recipients for Program Year 2026:
• Homeless Services (—$33,500): Journeys I The Road Home, Northwest Compass, and
Wings
• Public Services (remainder of $60,000 cap): Children's Advocacy Center,
Connections to Care, CASA, and Suburban Primary Health Care Council
• Affordable Housing ($117,000): Northwest Housing Partnership single-family
rehabilitation program (zero -interest deferred loans, maximum $25,000 per household,
repaid upon sale)
• Community Facilities ($25,000): Search 360— rehabilitation of a CILA (Community
Integrated Living Arrangement) on Kenilworth Avenue
• Public Infrastructure ($200,000): Village sidewalk infill and replacement program in
low -to -moderate income areas
Director Shallcross explained that the sidewalk program ensures annual expenditure of all
available funds, as failure to expend funds results in reduced allocations in subsequent years. He
also clarified that CDBG participation does not impose inclusionary zoning or other regulatory
land use requirements on the Village.
A brief Board discussion followed.
Motion by Colleen Saccotelli, second by Terri Gens to approve the Community Development
Block Grant Program Year 2026 Action Plan:
Yea: Vincent Dante, Beth DiPrima, Terri Gens, Bill Grossi, John Matuszak, Colleen Saccotelli
Nay: None
Final Resolution: Motion Passed
Resolution No. 16-26
OLD BUSINESS - None
NEW BUSINESS
8.1. 1st reading of AN ORDINANCE IMPLEMENTING ATEMPORARY MORATORIUM ON THE
ACCEPTANCE AND APPROVAL OF CERTAIN BUSINESS LICENSES (MASSAGE
ESTABLISHMENTS) IN THE VILLAGE OF MOUNT PROSPECT
Village Attorney Lance Malina presented the proposed ordinance, which would implement a
temporary six-month moratorium on the issuance of new business licenses for massage
establishments in the Village. The attorney explained that the moratorium is procedural and
intended to allow staff time to review and strengthen the existing licensing, vetting, and
enforcement processes for massage businesses. The Village has experienced recurring compliance
issues with such establishments, and staff, working with Director Shallcross, is developing
improved standards. The six-month period was described as legally defensible.
In response to a question from the Board, Mr. Malina confirmed that any completed application
already in the queue would not be subject to the moratorium, but that applications found to be
materially deficient or incomplete would be governed by the new ordinance.
Motion by Vincent Dante, second by Bill Grossi, to waive the rule requiring two readings and
adopt the Ordinance Implementing a Temporary Moratorium on the Acceptance and Approval of
Certain Business Licenses (Massage Establishments) in the Village of Mount Prospect:
Yea: Vincent Dante, Beth DiPrima, Terri Gens, Bill Grossi, John Matuszak, Colleen Saccotelli
Nay: None
Final Resolution: Motion Passed
Ordinance No. 6857
8.2. 1 st Reading of AN ORDINANCE AMENDING ORDINANCE NO. 3777 GRANTING A SPECIAL
USE IN THE NATURE OFA PLANNED UNIT DEVELOPMENT, AMENDED BY ORDINANCE NO.
4065, FOR PROPERTY LOCATED AT 1600 BISHOP COURT, MOUNT PROSPECT, ILLINOIS
(PZ-12-26)
Director Shallcross presented the proposed planned unit development (PUD) amendment for the
property at 1600 Bishop Court, located at the southwest corner of Kensington and Wolf Roads
within the Kensington Business Center (KBC). The property is zoned 1-1 Limited Industrial and has
served as NTN Bearing USA's headquarters for approximately 20 years. Following NTN Bearing's
departure to Class A office space in another community, the building has been 100 percent vacant
for the past year. The regional suburban office market is experiencing a vacancy rate of
approximately 30 percent, while the industrial vacancy rate is below 5 percent.
The petitioner, Wingspan Development, is requesting a PUD amendment to redevelop the property
as a speculative flex industrial/warehouse building. No rezoning is being sought; the pro pertywould
remain 1-1 Limited Industrial. Two conceptual site plans are proposed:
• Primary Site Plan: A spec industrial building of approximately 100,000 square feet with
approximately 90 parking stalls and 20 truck docks. Truck docks would be oriented to the
south, with screen walls and a continuous six-foot evergreen hedge along the southern
property line to limit visibility. Building elevations would feature tilt -up concrete panel
construction with architectural accents and a two -node office design facing Kensington
and Wolf Roads.
Alternative Site Plan: Tailored for a specific pharmaceutical distribution user already
operating within the Village, this plan provides approximately 150 parking stalls and 10
truck docks relocated to the southwest corner of the building, with an additional row of
parking along the north (Kensington) frontage. Access onto Kensington Road would be
restricted to right-in/right-out for staff vehicles only, with all truck access required to use
the signalized Bishop Court entrance.
The Planning and Zoning Commission recommended approval by a vote of 3-2 at its July 9th
meeting, subject to conditions including substantial landscaping preservation and replacement,
truck dock screening, cross -access modifications between 1600 Bishop and 1660 Feehanville, and
access control measures for the alternative site plan to prevent cut -through traffic.
Director Shallcross highlighted a new condition added by staff following the Planning and Zoning
Commission meeting: any tenant deemed to be a cartage, courier, parcel distribution, or last -mile
delivery service would be required to undergo a full conditional use approval process before
receiving a business license or certificate of occupancy. This condition was added directly in
response to public concern about the potential for an operation similar to a prior problematic last -
mile facility in the KBC. Staff indicated their intention to subsequently extend this conditional use
requirement to all 1-1 Limited Industrial properties through a text amendment.
Trustee Matuszak disclosed that his son is a summer intern with a related entity of the developer
and, after consulting with the Village Attorney, confirmed that he has no conflict of interest, can
participate in the discussion and vote, and that he can do so fairly.
An extensive Board discussion followed.
Board Comments:
• Noted that KBC's currentvacancy rate of approximately 3.1 percent, its designation as a
community asset and major revenue source.
• Emphasized that this was not a rezoning, that the KBC's industrial zoning predates
nearby residential development, and expressed satisfaction with the conditional use
safeguard for last -mile delivery uses.
• Requested that staff conduct a traffic and pedestrian safety review of the Wolf Road and
Kensington Road corridor once a tenant is in place, and that the Village consider
strengthening its facade requirements for industrial development through a future code
amendment.
• Noted that the conversion of suburban offices to industrial is a widespread market
phenomenon and that the prospective pharmaceutical tenant has generated no
complaints at its current Village location.
• Noted the building's height and materials are comparable to recent construction
elsewhere in the Village
• Cited historical evidence from a 1986 Tribune article showing that distribution and light
manufacturing uses were always part of KBC's original intent.
Public Comment:
Clerk's note: Mayor Hoefert noted that the Board received a public comment via email
from Jo Megerle, Superintendent of River Trails School District, raising concerns about the
project, specifically regarding the safety, health, and well-being of students and families.
Ms. Megerle was unable to attend the meeting in person due to the concurrent D26
School Board meeting.
CJ Zimmerman
Mount Prospect resident
• Raised concerns about increased truck traffic on Wolf and Kensington Roads,
pedestrian safety near KBC, River Trails Middle School and businesses in the area.
• Questioned if this is an appropriate site for an industrial warehouse.
Courtney Zimmerman
Mount Prospect resident
• Reiterated concerns regarding the project's proximity to River Trails Middle School
• Requested the Board to delay or vote noon this project, noting that the project was only
narrowly recommended by the Planning and Zoning Commission.
• Requested independent traffic and safety studies.
• Asked for transparency in Village leadership.
Steve Polit
601 N. Wilshire Drive
• Potential lessees of the proposed site are hesitant to commit to a lease until they see if it
receives approval, or might be looking elsewhere outside the Village.
Brian Wilk
630 Castlerea Lane, Des Plaines
Raised questions about whether an approved building variance for an adjacent
facility may have increased reflected sound levels in violation of the Village's noise
ordinance.
Mary Pat Donohue
1411 Callen Lane, Des Plaines
Longford Glen Homeowners Association
Expressed concern that a trucking warehouse is not suitable for this location because it
will be difficult to camouflage 18-wheel trucks from nearby medical facilities and
neighborhoods.
Suggested businesses such as Nicholas Sportsplex, ice arena, and soccer fields are
more suitable uses.
Referenced the vision for Mount Prospect outlined in the proposed MP2040 Plan, calling it
an impressive plan.
Jeff Solida
Des Plaines resident
• Complaints were received after January 1, 2026, regarding noise from OnTrac Logistics.
• Requested to limit hours of operation for the proposed new tenant.
Matt Murphy
1515 Mitchell Lane
Questioned how the Village will respond to noise, odor, or any other egregious use that
impacts the enforceability of conditions, given their experience with a previous
problematic facility in the KBC.
Mayor Hoefert ended the public comment period.
Motion by Bill Grossi, second by Vincent Dante to waive the two -reading requirement and adopt
the Ordinance Amending Ordinance No. 3777, as amended by Ordinance No. 4065, for the
Property Located at 1600 Bishop Court:
Yea: Vincent Dante, Beth DiPrima, Bill Grossi, John Matuszak, Colleen Saccotelli
Nay: Terri Gens
Final Resolution: Motion Passed
Ordinance No. 6858
Trustee Terri Gens left the meeting at 9:57 p.m.
VILLAGE MANAGER'S REPORT
9.1. Motion to accept the proposal from Tank Industry Consultants, Inc. of Indianapolis, Indiana
for design and construction engineering services related to the rehabilitation of the 1 Million
Gallon Water Storage Tank at Northwest Highway and Maple Street for a cost not to exceed
$212,388.
Public Works Director Sean Dorsey presented the proposalfrom Tank Industry Consultants for the
subject project.
Director Dorsey explained that the elevated water storage tank at Northwest Highway and Maple
Street was last painted in 2014 and was originally scheduled for rehabilitation in 2029— 2030. Staff
is recommending accelerating the project because the tank has been identified as a likely
relocation site for antennas currently housed at 111 East Busse Avenue, and it is preferable to
complete the rehabilitation before antenna installation to avoid complications with temporary
antenna accommodations.
Three engineering proposals were received and evaluated. Tank Industry Consultants (TIC) of
Indianapolis was selected as the highest -ranked firm. TIC has previously supervised the
rehabilitation of this tank on at least two occasions and specializes exclusively in tank
engineering. The scope of work involves an inspection to determine the appropriate recoating
system — either a top coat or a near -bare -metal blast with new epoxy— followed by design and
construction oversight. The planned timeline calls for design work in fall 2026, bid letting in late
2026 orwinter, and construction beginning in summer 2027. The project is expected to take up to
20 weeks, during which time the tank will be taken out of service and pressure will be maintained
through JAWA deliveries and booster pumping. A full near -bare -metal blast recoat system is
expected to have a service life of 20-25 years. The Board discussed whether to keep the tank's
current color scheme and centennial graphics, and Director Dorsey indicated that the existing
design would likely be maintained, with input accepted if any changes are desired.
Motion by Bill Grossi, second by John Matuszak to accept the proposal from Tank Industry
Consultants, Inc. for design and construction engineering services related to the rehabilitation of
the 1 Million Gallon Water Storage Tank at Northwest Highway and Maple Street for a cost not to
exceed $212,388:
Yea: Vincent Dante, Beth DiPrima, Bill Grossi, John Matuszak, Colleen Saccotelli
Nay: None
Absent: Terri Gens
Final Resolution: Motion Passed
9.2. Motion to accept the proposal from Christopher B. Burke Engineering LTD of Rosemont,
Illinois for Rand/Kensington/Elmhurst Road (IL Route 83) Intersection — Phase III
Construction Engineering Services for an amount not to exceed $1,656,576.
Director Dorsey presented the proposal for Phase III construction engineering for the
Rand/Kensington/Route 83 intersection improvement project. He described the scope of the
project, which involves adding through lanes and dedicated turn lanes at the major intersections of
Rand, Kensington, and Route 83, increasing turning capacity at the Randhurst Village west
entrance on Kensington, additional turn lanes near Highland on Route 83, street lighting, shared -
use paths on both sides of the corridor, and traffic signal improvements. Total project cost is
estimated atjust over $19 million, of which approximately $15 million (77 percent) is funded
through federal and state grants.
Because the project involves federal funding, IDOTwill lead the construction contract and serve as
the primary payer for the contractor. The Village is responsible for hiring and funding the
construction engineering inspector. A submission to IDOT is required by the end of July,
necessitating timely Board action. Six proposals were received, and the top three firms were
selected for interviews. Christopher B. Burke Engineering was selected based on its experience
with complex IDOT-led intersections, the qualifications of its proposed project engineer,
familiarity with the Village from priorwork at the Rand/Central/Mt. Prospect Road project, and a
competitive fee. The contract amount represents approximately 12 percent of the estimated
construction cost, at an average billing rate of approximately $166 per hour forjust under 10,000
hours of work. The fee is expected to remain near the contract amount regardless of the final
construction bid price, unless the scope materially changes.
Director Dorsey answered questions from the Board.
Public Comment:
Steve Polit
601 N. Wilshire Drive
Requested that the Village conduct a baseline traffic count study for cut -through traffic
on Highland Avenue and through the Brickman Manor subdivision in advance of
construction.
No additional discussion.
Motion by John Matuszak, second by Vincent Dante to accept the proposal from Christopher B.
Burke Engineering LTD of Rosemont, Illinois for Rand/Kensington/Elmhurst Road (IL Route 83)
Intersection — Phase III Construction Engineering Services for an amount not to exceed
$1,656,576:
Yea: Vincent Dante, Beth DiPrima, Bill Grossi, John Matuszak, Colleen Saccotelli
Nay: None
Absent: Terri Gens
Final Resolution: Motion Passed
9.3. Pension Funding Strategy and Bonds Discussion
Finance Director Amit Thakkar presented a comprehensive pension -funding strategy and bond -
issuance proposal on behalf of the Finance Department. He opened with the current status of the
Village's public safety pension funds as of December 31, 2025: the Police Pension Fund has a
funding ratio of 66.4 percent (unfunded liability of approximately $57.3 million), and the Fire
Pension Fund has a funding ratio of 69.6 percent (unfunded liability of approximately $42.8
million), for a combined unfunded liability of approximately $100 million. Without any changes to
the current approach, the Village's pension levy would increase by approximately $603,000 in the
comingyear.
Director Thakkar explained that the combined unfunded liability is effectively being financed at
7.25 percent interest over 14 years toward a 100 percent funding goal by 2040. He reviewed the
concept of Pension Obligation Bonds (POBs), noting that while they offer the conceptual benefit of
refinancing pension debt at a lower interest rate (approximately 4-5 percent for taxable bonds
versus 7.25 percent actuarial interest), standalone large -volume POB issuances are viewed
negatively by credit rating agencies, involve significant market and interest rate risk, and are
typically associated with financially distressed governments. Accordingly, staff does not
recommend a large-scale POB issuance. Instead, Director Thakkar proposed a hybrid strategy
combining a targeted sales tax diversion with a limited bond issuance:
• Sales Tax Diversion: Redirect $5 million annuallyfrom the existing sales tax allocation
currently directed to capital and street projects toward additional pension contributions,
over fouryears or until the pension funding ratio reaches 80 percent, whichever comes
fi rst.
• Bond Issuance: Issue $10 million in bonds—$5 million to fund street projects displaced
by the pension diversion, and $5 million for the Community Connection Center
/ Village Resource Center (to be repaid through the Prospect and Main TIF increment of
approximately $1.8 million annually. The street/capital bonds would be structured to be
abated using existing abatement revenue sources, requiring no new property tax levy.
Actuarial analysis projects that the additional $2.5 million annual contribution to each pension fund
(combined $5 million) would raise the combined pension funding ratio to approximately 79-80
percent by 2029, and would produce a cumulative reduction in future pension levy requirements of
approximately $15.9 million for Fire and $15.6 million for Police between 2026 and 2040, for a
combined gross savings of approximately $31.5 million. After accounting for the
$10 million contributed over four years, the net savings is estimated at approximately $11.5
million ($5.9 million for Fire and $5.6 million for Police). Critically, because existing bond
abatement revenues are sufficient to service the new bonds through 2028 and beyond (when
existing bonds roll off), no new propertytax levy is required.
DirectorThakkar also presented the Village's position relative to Illinois municipalities with AAA
bond ratings. The Village currently holds a AA+ stable rating from S&P. Key benchmarks for AAA
include a general fund balance exceeding 60 percent of annual expenditures (the Village is at
approximately 69 percent), a pension funding ratio averaging approximately76 percent (the Village
is at approximately69.6 percent, projected to reach 80 percent underthis strategy), and a median
household income averaging approximately$148,000 (the Village's is $101,000,which is below
average but may be offset by the strength of other metrics, including the establishment of the
Economic Emergency Fund and Pension Stabilization Fund). The Finance Commission
unanimously recommended this strategy.
A Board discussion followed, commending DirectorThakkar for his creative and strategic methods.
Director Thakkar answered the Board's questions.
The Board unanimously agreed to move forward with implementation. No formal vote was
necessary at this meeting since the discussion was purely informational and directional.
9.4. Assubmitted
No additional report
ANY OTHER BUSINESS
No other business was brought before the Board.
ADJOURNMENT
With no additional business to conduct, Mayor Hoefert asked for a motion to adjourn. Trustee
Dante seconded by Trustee Saccotelli motioned to adjourn the meeting. By unanimous voice
vote, the July 21, 2026 Regular Meeting of the Village Board of Trustees adjourned at 10:41 p.m.
Respectfully submitted,
Karen M.Agoranos
Village Clerk