Village of South Barrington Finance Committee met April 6.
Here is the minutes provided by the committee:
CALL TO ORDER
The meeting was called to order at 2:03 pm by Committee Chairman Stagno.
ROLL CALL
Members Present: Chairman Stagno, Trustee Joe Abbate and Trustee Bernard Kerman.
Members Absent: None.
Others present: Mayor Paula McCombie, Trustee Edgar Alvarado, Trustee Steve Guranovich, Treasurer Michelle Bodie, Chief Tom Roman and Administrator Bob Palmer.
PUBLIC COMMENT
No public present for comment.
APPROVAL OF MINUTES
Trustee Kerman made a Motion to approve the Finance Committee Minutes of March 9, 2020. Trustee Abbate seconded the motion. By unanimous voice vote, the Motion passed.
AGENDA ITEMS
1. Preliminary Notice of IMRF Contribution Rate for 2020
Bodie presented information from MRF regarding the Regular and SLEP rates for the coming year. Bodie noted that the Regular rate had dropped from 11.28% to 9.52% and the SLEP rate had increased from 11.2% to 12.42%. The MRF account is 79% funded and the SLEP account is 91% funded. No action required on this item.
2. Review of Fiscal Year 2020/2021 Budget
(To be presented at April Board meeting and held for approval at May Board meeting)
Bodie explained that under the current circumstances and basically a state-wide lock-down of non-essential functions, revenues are very difficult to project for the coming year. The Illinois Municipal League regularly projects the different revenue streams and has made a number of revisions already in the past several months, however the COVID-19 Pandemic had overshadowed any previous IML projections. It is now too new for IML to have made any projections about the upcoming budget year. Bodie explained that the rough estimate is a 20% reduction in revenues for this upcoming year. The proposed budget totals $6.5 million. Some of the changes proposed are to not include additional expenditures in the road fund. Mayor McCombie commented that there may not be a need for a road program next year, perhaps just patching. Roads are in very good condition. Mayor McCombie also commented that the Village is very fortunate to have no debt during this crisis. Due to the Village's financial condition, no increase in property taxes is anticipated. Trustee Guranovich asked if the Village would be able to receive any federal assistance. Bodie responded that expenses due to COVID-19 are being documented for submission to the federal government. Trustee Kerman asked about the Police Department and where they stand in terms of having PPE's available to them. Bodie responded that additional PPE’s is something the Chief and the department have been working on to secure and the expenses have been accounted for in the upcoming submittal for reimbursement. Trustee Abbate asked about insurance coverage and the loss of revenue, if that would be covered. Bodie explained that such an expense would not be covered and would not be reimbursed from the information available. Trustee Alvarado asked about lost sales at the Arboretum. Bodie explained that claims due to infectious diseases are not covered. Mayor McCombie reminded the Trustees present that the Arboretum has an agreement with the Village to share sales tax. That agreement is expiring this year and the Arboretum management is to be putting together a proposal for renewal of that agreement under new terms. In light of the COVID-19 Pandemic and the expected loss of revenue, the discussion with the Arboretum will take the conditions into account. Trustee Kerman asked about the impact to the water treatment plant and the customers there. Bodie explained that there would not be an impact on the water treatment operation. Trustee Guranovich asked about the restaurants and how they are doing only being able to offer take-out. Bodie reported that one of the Arboretum establishments was optimistic about the efforts to stay in business and continue with carry-out. Another restaurant had been very busy during the early dinner hour. As far as the impact on revenue to the Village, sales tax will be down and delayed. No action necessary at this time.
3. Discussion of General Fund Cash Reserve
Chairman Stagno asked about the next item, General Fund Cash Reserve balance, Bodie explained that her recommendation was to leave funds in the General Fund for cash flow purposes at the present time. This amounts to approximately $300 thousand. No action necessary at this time.
4. Discussion on Due Dates and Penalties on Late Payments During COVID-19 Business Restrictions
Bodie presented this item regarding due dates, late penalties and requests to pay late in light of the COVID-19 Pandemic. Questions regarding late payments can come in from the businesses in the village and also from residents with water bills for example. Bodie explained that she conducted a survey of neighboring communities and four out of five surveyed were not waiving fees. One community was suspending water shut-offs. One business in the Arboretum generates a large water bill (over $5,000 per month) and the penalty is often approximately $500. Trustee Kerman noted that the water bills should be lower with businesses closed. On the residential side, Bodie explained that approximately a half-dozen water bills are consistently late on payments. Trustee Abbate expressed that his view was that the current policy is adequate. Chairman Stagno commented that handling on a case by case basis should continue. No action required.
MAYOR'S REPORT
Mayor McCombie commented in regard to the last Special Board Meeting on April 3, 2020, where resident Dr. Goyal joined the Board to discuss potential efforts to address the COVD-19 issue locally. Checking on residents with special needs was one of the suggestions from the meeting. Mayor McCombie explained that she is working with the Police Dep software program to create a data base of individuals with special needs and a robo-call will be going out later in the week to address this issue. Chief Roman commented on the software being considered for this purpose.
STAFF REPORTS
Village Administrator Palmer reported on a developer interested in property located at Mundhank and Freeman, replacement trees for the new trees planted last year will be planted after Arbor Day and Cuba Township was able to pick-up the two damaged fire hydrants and a valve for scrap metal from the water plant. Palmer reported that there is an ample supply of hand sanitizer and a call to the Marriott in Hoffman Estates indicated that a rate for emergency responders was available.
Finance Director Bodie reported that according to IMTA, pensions will be going up and also that the City of Chicago had an officer pass from COVD-19 and the city made the decision to consider the death in the line of duty. Mayor McCombie shared that she and Chief Roman had been discussing how to handle the situation if officers contract the virus in terms of quarantine and even if officers are concerned about going home to their families. Further discussion was expected on this topic.
OLD BUSINESS
No old business.
NEW BUSINESS
No new business.
ADJOURNMENT
Having no further business, Trustee Kerman made a motion to adjourn the meeting. Trustee Abbate seconded the motion. By unanimous voice vote, the motion passed, and the meeting was adjourned at 3:02 PM.
https://docs.google.com/document/d/1va5lxYV-eks1rOQBCwZWTOaar8st4ANcoUT6QGhut_0/edit
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