Government Center

719 S. Batavia Ave., Bldg. A

Geneva, IL 60134

Kane County

KC Finance and Budget Committee

Meeting Minutes

BERMAN, Lenert, Juby, Lewis, Sanchez, Surges, Tepe, ex-officios Roth (County Vice Chair)

and Pierog (County Chair)

Wednesday, March 26, 2025

9:00 AM

County Board Room

Call To Order

Chairman Berman called the meeting to order at 9:00 AM.

Roll Call

Board Member Dale Berman

Board Member Bill Lenert

PRESENT

Board Member Leslie Juby

Board Member Anita Lewis

Board Member Jarett Sanchez

Board Member Clifford Surges

Board Member Vern Tepe

Ex-Officio County Board Vice Chair Bill Roth

Ex-Officio County Board Chair Corinne M. Pierog

Also present: Co. Bd. Members Allan*, Bates, Gripe, Kious*, Molina*, Penesis*,

Strathmann; Treasurer Lauzen; Auditor Wegman; Fin. Exec. Dir. Hopkinson; ITD/BLD

Exec. Dir. Fahnestock & staff Lasky, Peters; SAO staff Frank, Hunt*; HRM Exec. Dir.

Lobrillo; KDOT Dir. Zakosek & staff Rickert*; KCHD Exec. Dir. Isaacson & staff

Snowden*; KCAC Admin. Youngsteadt; KaneComm Dir. Guthrie; and members of the

press and public.

Remote Attendance Requests

There were no remote attendance requests for today's meeting.

Approval of Minutes: February 26, 2025

RESULT:

MOVER:

APPROVED BY UNANIMOUS CONSENT

Vern Tepe

Public Comment

Michelle Bettag, St. Charles, stated that she has been attending the town hall meetings

across Kane County. She has listened to County Board Members explain why it is a

must to get the retail sales tax passed in order to maintain a healthy and safe lifestyle

in Kane County. She addressed what citizens are not being told, such as the increased

spending of 88% in four years, increased taxes, funding received from COVID, the

American Rescue Plan Act (ARPA), and earned interest income. Bettag spoke on the

changing definition of public safety that has been shared at the town meetings. She

concluded that public safety includes, but is not limited to, crime prevention, detention,

fire fighting, police, medical, ambulance, et cetera. She addressed the "not limited to"

clause. At the Elgin Town Hall Meeting, it was mentioned that the retail sales tax would

help with installing lactation rooms and repairing leaking pipes. Bettag stated that the

proposed 0.75% retail sales tax would generate an additional $51M, which is a 47%

increase in the County's General Fund. She noted that the public safety scare tactic is

mind numbing and she is tired of seeing Madam Chairman Pierog, Board Members,

and specific departments not being told "no". Bettag stated that the County should

have a spending freeze. She explained that when the public is being told that this

proposed sales tax revenue would be placed into a special fund, it is not true.

According to the Illinois Department of Revenue, David Harris, the County Board can

decide on where this additional revenue could be placed. Bettag stated that this will

become a slush fund for projects. If the County was in the financial bind that has been

stated, none of the projects listed would be considered.

Brian Anderson, Sugar Grove, mentioned that he came today to listen to the Finance

Committee meeting. However, he chose to address the Committee after he saw

County Board Member, Mavis Bates, District 4, attending. He recalled the ninth Kane

County Retail Sales Tax Awareness meeting article published in Kane County

Connects. He spoke on his embarrassment that the Sugar Grove Town Hall Meeting

was cancelled. He explained that the meeting was cancelled not due to a Board

Member, who should have known the proper protocol, but because a Kane County

citizen noticed that the location of the scheduled meeting was at a polling place, in

which electioneering is not allowed. Anderson stated that he met with the Sugar Grove

citizen and thanked him. He noted that the Kane County Board Member that was

hosting this event should have known this and held the meeting, elsewhere. He stated

that if the Board cannot handle the small details, they certainly cannot handle the big

ones.

Treasurer's Report (C. Lauzen)

Monthly Report

Treasurer Lauzen stated the monthly report was on file. He explained that a

point being made at the Town Hall awareness meetings needs correction. That

the public has been told that the tax freeze has caused the need for the

referendum and that the County left money on the table during this freeze. He

noted that this is not an accurate assessment. He mentioned that today's

presentation will show a historical record on how much tax relief was provided in

the past. He explained that all money that is earned/saved belongs to the

government and it is up to them on how much each entity gets to keep. Lauzen

stated that the total tax relief that was provided to the County during 2020 was

$119M, which included the Kane County Forest Preserve. He mentioned that

the County was in such solid condition, that there were surpluses each year,

more revenue than expense, and the County was able to pay down the public

debt by 70%. Lauzen referenced the January 29, 2025 Finance Committee

meeting's financial reports. In this report it showed that between 2014 to 2022,

the County had more revenue than expenses. However in 2024, the County's

expenses were more than revenue. Finally, Lauzen addressed the notion that

there was no increase to taxes and/or revenue that the County receives, which

is false. He explained that the "Other Taxes" listed in the report include the State

Sales Tax and Income Tax that went from approximately $28M to $37M. Lauzen

stated he has became physically ill when sitting in these town hall meetings and

hearing the misdirection to taxpayers. Lauzen spoke on the Actual Performance

of Interest Earned Fiscal Years 2023 thru 2025. He stated that the projected

interest income is approximately $16M to $17M per year. He presented the

Kane County - Portfolio Analysis - February 28, 2025 - Summary. He explained

that he has shifted some of the balances between the two managers, Vectors

and PFMAM. He stated that he has shifted more money into Vectors for a higher

return. Lauzen provided a new presentation of information that described where

the County was a year ago versus now. The difference in total demand and

investment balances have decreased by approximately $24M. Lauzen stated

that $20M times 5% equals the County having $1M less to spend because of

using up fund balances. He spoke on the FY25 Funding Needs and Liquidity.

Because the County is spending down account balances, the Treasurer's Office

picks the lowest interest earning accounts to transfer money in to cover the

spending obligations that are created. Lauzen commended Vectors Asset

Management for being recognized as the PSN Top Guns List of Best Performing

Strategies for Quarter Four 2024. He presented the Interest Earned Fiscal Years

2019-2024. He mentioned that this graph depicts the interest earned and where

it is being distributed throughout the County. He explained that he was

challenged publicly on whether interest income can be fully aggregated. He

stated that a study was conducted by an outside law firm, which concluded that

between 40% to 50% of all interest in various funds that is not obligated or come

from fees and levies can be aggregated into County funds. This choice is at the

mercy of the County Board. (Madam Chairman Pierog arrived in-person at 9:21

a.m.) Lauzen spoke on the interest figures according to the

USInflationCalculator.com. He addressed the impact of inflation over the last

four years. If one had savings and/or earnings of a dollar in 2021, the value of

that dollar would have depreciated to $.82 in 2024. This is a loss of 17.5% of

every dollar earned or saved. Lauzen addressed questions and comments from

the Committee. Much discussion ensued.

Auditor's Report (P. Wegman)

Monthly Report

Auditor Wegman stated the monthly report was on file. She mentioned that the

Auditor's Office sent out the Quarterly Report to all Board Members. She stated

that the format of the report has been updated to make it come comprehensible.

Approving February 2025 Claims Paid

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Clifford Surges

MOVER:

Jarett Sanchez

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Finance Director's Report (K. Hopkinson)

Monthly Finance Reports

Fin. Exec. Dir. Hopkinson stated the monthly financial reports were on file. She

explained that the fiscal year budget process has usually begun by now, but was

requested to hold off until the results of the April Consolidated Election was

known. She noted that the Finance Department is fully prepared to begin

working with County departments/offices to start the process. Hopkinson stated

that the 2025 Budget Book should be finished by Monday, March 31, 2025. She

explained that the Budget Book is a compilation of all the schedules and

narratives from all departments. She mentioned that the 2024 annual audit

process has continued. She is hopeful that it will be finished by the May 31,

2025 deadline. There are still some transactions from offices that are behind

schedule that may impact the completion. Hopkinson highlighted the work of the

Finance Department. She explained that Finance staff works with the

departments to conduct trainings on financial matters to help gain a better

understanding. She encouraged all to participate in these trainings, if able. She

requested feedback on the kinds of trainings the departments/offices would like

to have. These trainings help address the hurdle of receiving information in a

timely matter for better financial reporting. Hopkinson and ASA Frank addressed

questions and comments from the Committee. Much discussion ensued.

New Business

Amending Kane County Financial Policies Related to Travel

Committee Member Juby explained that at the Human Services Committee

meeting it was determined to send a policy through for the County Board

Members, but also the Chair. However, on the resolution, there is not a

reference to the County Chairman, just to the County Board Members. On the

policy itself, it does reference the members and the chairman. She questioned

why this was not reflected within the resolution. HRM Exec. Dir. Lobrillo stated

that an amendment could be made to this resolution to include the chairman.

The resolution's WHEREAS clauses were established to address why the policy

was written. The resolution adopts the policy as written in Exhibit A.

Juby motioned to amend the fourth WHEREAS clause within this resolution that

stated, "WHEREAS, the Kane County Code, Section 2-72: Travel Expenses

Generally, provides for reimbursement for the expenses of county board

members; and" to "WHEREAS, the Kane County Code, Section 2-72: Travel

Expenses Generally, provides for reimbursement for the expenses of county

board chairman and members". Additionally, the WHEREAS clause that states,

"WHEREAS, it is necessary to amend section (f) of the Kane County Financial

Policies, Travel Policy, to include an approval process and additional limitations

for county board members outlined in Exhibit A" should also include the county

board chairman and members. Committee Vice-Chairman Lenert seconded the

amendment. Discussion ensued. (Committee Member Allan arrived remotely at

9:52 a.m.) Motion carried unanimously by roll call vote.

KC Executive Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Clifford Surges

TO:

MOVER:

SECONDER:

Bill Lenert

Dale Berman, Bill Lenert, Leslie Juby, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Authorizing New Job Position and Emergency Budget Adjustment to Fund 101

for the GIS-Technologies Department

Committee Member Juby voiced her reasoning to support this new job position.

She stated that this position will be funded by fees and money not needed to be

found in order to support it. She explained that this job position remained

opened and was removed from the FY2025 Budget. However, after a fee study,

it was found that the fees could be increased, which would sustain the salary of

this position. Committee Vice-Chair Lenert inquired about any verification that

this position will be fully funded by fees. ITD/BLD Exec. Dir. Fahnestock

explained that this is a Geographic Information System (GIS) position, which is

funded by a Special Recorders Fee. He mentioned that a fee study was

conducted, which allowed the County to increase the fee amount. He explained

that due to the County's fiscal restraint this vacant position was removed from

the FY2025 Budget, but since the increase in fees occurred, GIS is seeking to

reestablish it. Fahnestock stated that the fees have been a reliable revenue

stream from recorded deeds and property transactions. He explained that the

projection of this years revenue would support this position for future years.

Discussion ensued.

KC Executive Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Leslie Juby

TO:

MOVER:

SECONDER:

Jarett Sanchez

Dale Berman, Bill Lenert, Leslie Juby, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Authorizing Reimbursement to the Kane County Sheriff’s Office for Costs

Expended for the Administrative Wing Project (Resolution No. 23-394)

Fin. Exec. Dir. Hopkinson explained that the last paragraph of this resolution

mentions that the Kane County Finance Department is directed to take all steps

to facilitate and process this reimbursement payment, et al. However, the

Finance Department does not process payments. Hopkinson and ASA Frank

addressed questions and comments from the Committee. Much discussion

ensued.

Committee Member Juby motioned to call the vote, Surges seconded. Motion

passed by a 5-2 vote.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Bill Lenert

MOVER:

Jarett Sanchez

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Authorizing Number of Procurement Cards Issued to the Building Management

Department and Each of Their Transaction Limits

RESULT:

MOVER:

APPROVED BY ROLL CALL VOTE

Clifford Surges

Bill Lenert

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Establishing an Attrition Program for Kane County Personnel

Committee Member Surges asked for caution and kindness when addressing

HRM Exec. Dir. Lobrillo. He explained that the County Board asks Lobrillo often

to complete tasks that no one else is willing to do and then is targeted as the

"bad guy". He noted that this resolution is not Lobrillo's opinion. This resolution

was written up by Lobrillo at the request of the Board. He thanked Lobrillo.

HRM Exec. Dir. Lobrillo explained that the provisions of this resolution was

drafted from the feedback from County Board Members. This resolution would

put a hiring freeze on County departments and establishes a process, by which,

if a department head does not feel they can accommodate the vacancy and

needs the position filled, they go to a group of people who can evaluate if there

are other resources within the County, such as general fund employees, before

a position is hired. She mentioned that it is not up to this group to determine, if

this position has to be filled but rather the best way to fill it. When the County

has had hiring freezes in the past, a process was not established on how to

address the situations where a position needs to be filled, which caused those

hiring freezes to be ineffective. Lobrillo mentioned that Kane County is currently

in a hiring freeze. She explained that the approval process in place is

inconsistent between departments and has become a process in which the

Board does not have the proper information to make an informed decision.

Lobrillo addressed questions and comments from the Committee. Much

discussion ensued.

Committee Member Juby motioned to send this resolution to the next Human

Services Committee meeting, Surges seconded. Discussion ensued. Madam

Chairman Pierog recommended that a department head who confers with all

other department heads is selected to seek their opinions and/or concerns on

this matter. The report would then be brought to Human Services. Committee

Member Lewis requested that the matters that need to be further discussed is

the criteria in which this evaluation panel would evaluate the job positions, the

members of the evaluation group, and final reports of grant funded departments.

Further discussion ensued. Motion carried unanimously by roll call vote.

KC Human Services Committee

RESULT:

TO:

HELD OVER

KC Human Services Committee

Clifford Surges

MOVER:

Leslie Juby

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE: