Government Center

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Geneva, IL 60134

Kane County

KC Finance and Budget Committee

Meeting Minutes

BERMAN, Lenert, Juby, Lewis, Sanchez, Surges, Tepe & ex-officios Pierog (County Chair)

Monday, August 19, 2024

9:00 AM

County Board Room

***SPECIAL MEETING***

Call To Order

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

Roll Call

Board Member Dale Berman

Board Member Bill Lenert

Board Member Leslie Juby

Board Member Vern Tepe

PRESENT

Board Member Anita Lewis

Board Member Jarett Sanchez

Board Member Clifford Surges

REMOTE

ABSENT

Ex-Officio County Board Chair Corinne M. Pierog

Also present: Co. Bd. Members Allan*, Bates, Gumz*, Kenyon, Kious*, Molina*, Roth,

Strathmann*; Fin. Exec. Dir. Hopkinson; KDOT Deputy Dir. Rickert; ITD/BLD Exec. Dir.

Fahnestock & staff Lasky*, Files, Peters; Sheriff Hain; Auditor Wegman; State's

Attorney Mosser* & staff Frank, Hunt*, Shepro; Circuit Clk. Barreiro & staff Herwick,

Johnson; Public Defender Conant; Court Srvs. Exec. Dir. Aust & staff Davis; Court

Admin. O'Brien & staff Mathis; Asst. Region. Supt. Oliver; HRM Exec. Dir. Lobrillo;

KCAC Admin. Youngsteadt*; KCHD CFO Snowden*; and members of the press and

public.

(Committee Member Sanchez arrived remotely 9:01 a.m.)

Remote Attendance Requests

Chairman Berman announced the remote attendance requests for today's meeting. He

asked the Committee if there were any objections to Committee Members Lewis and

Sanchez attending today's meeting remotely. There were no objections.

Approval of Minutes: None

Public Comment (Agenda Items)

None.

Public Comment (Non-Agenda Items)

None.

New Business

Fiscal Year 2025 Budget - Presentation

Fin. Exec. Dir. Hopkinson provided the FY2025 Budget presentation. She noted

that this presentation included the responses to the Finance Committee's

requests from the previous meeting. Hopkinson reviewed the 2025 Budget

Reduction Requests - General Fund. She noted that she heard back from the

majority of the County's departments/offices on possible budget cuts for the

FY2025 budget. Only four departments were able to make cuts totaling $544K.

Other departments stated they could not afford to make any budget cuts.

Hopkinson provided the details of the $544K budget cuts. (Committee Member

Lewis arrived remotely at 9:02 a.m.) She reviewed the details of the elimination

of the $4.3M transfer from the General Fund to the Capital Projects Fund. The

Building Management Department provided a list of building improvement

projects that will be impacted by this elimination. Hopkinson provided detailed

information on the General Government Revenues that Kane County receives

and in which County fund they are allocated to. She reviewed the State of Illinois

Department of Revenue's estimate reporting regarding the projections, if the

Kane County voters implemented a Special County Retailers' Occupation Tax.

She provided four financial examples of the County collecting this tax at a

0.25%, 0.5%, 0.75% and 1%. Hopkinson presented the current Assessor

Estimated Equalized Assessed Value (EAV) Report by Tax District - Kane

County. Provided the estimated EAV, Hopkinson shared the Property Tax

options that included Consumer Price Indexes (CPI) of 0.00% or 3.4%. If

property tax was collected with a CPI value of 3.4% the annual change is County

revenue would be $2,655,570.15. At a CPI of 0.00%, the County would bring in

$657,235,93. Hopkinson recommended that if the County did raise property

taxes to the 3.4%, to apply $657K to the Veterans' Commission Fund and the

FICA Social Security Fund. She noted that the overall General Fund would not

benefit from this increase. Hopkinson provided the FICA Fund (Payroll Taxes) -

Forecast and Reserve Target. She noted that both the FICA Fund and IMRF

Fund are currently using reserves. She provided detail information on these two

funds. Hopkinson addressed questions and comments from the Committee.

Much discussion ensued.

County Board Member Bates requested that emails being sent to the Finance

Committee be sent to all County Board Members. Further discussion ensued.

Overview of Regional Transportation Sales Tax

KDOT Deputy Dir. Rickert provided an overview of the Regional Transportation

Sales Tax as authorized by the Regional Transportation Authority (RTA) Act. His

primary point of discussion for today is the impact of the potential $4M one-year

transfer of the RTA Sales Tax. He provided a brief history of the RTA Sales Tax.

This tax was implemented to address funding shortfalls and local transportation

needs within the Chicago region. Kane County Division of Transportation

(KDOT) and other surrounding county transportation departments worked with

RTA, the Chicago Metropolitan Agency for Planning (CMAP), and legislators to

create the funding to address highway safety, capacity, maintenance, and transit

needs. The Kane County Board adopted policies to ensure that this sales tax

revenue was spent appropriately. Rickert noted that the RTA Sales Tax is

KDOT's primary source of revenue, which funds maintenance projects. The RTA

Sales Tax revenue equates to 33% of KDOT's overall budget. Rickert provided

the historical context on how Public Safety became apart of this legislation. He

reviewed the historical actions of the Kane County Board to assist the County's

General Fund with Transportation funding. Rickert stated that this is a policy

issue and he will follow what the County Board sets forth. He spoke on the

significant impacts of the $4M transfer would have on the Transportation

Improvement Program (five-year financial plan). He added that KDOT will

continue to seek federal and state grants to help with the financial shortfalls.

However, sought out grants will be focused more on maintenance activities.

Rickert reviewed the list of projects and programs that will be impacted if the

sales tax reduction were to occur. Rickert presented KDOT's Proposed FY2025

Budget Revenues and Expenditures - Recurring and New Capital Project Costs.

KDOT's proposed FY2025 budget is approximately 8% less than FY2024.

Rickert stated that today's presentation was an overview to show the County

Board what would need to occur if the $4M or 60% reduction is implemented.

From the staff level, the primary goal will be to try to protect the existing grants.

Currently, there is inadequate matching funds for FY2025 through FY2028, with

an estimated shortfall of $33M. KDOT will need to limit further grant applications

and submit only bridge maintenance grants. The Randall at Hopps Intersection

and CNRR Grade Separation projects are KDOT's greatest concern. Rickert

stated that the proposed RTA Sales Tax decrease of 60% will have a severe

and immediate impact on capital projects as the County already has limited

funds for matching grants. Rickert addressed questions and comments from the

Committee. Discussion ensued.

Adopting Requests for County Offices and Departments for Proposed

Reductions in the Preparation of the FY2025 County Budget

Court Srvs. Exec. Dir. Aust reiterated that when budget cuts are talked about,

especially something as complex as the court system, they cannot be discussed

in isolation. Each judiciary and public safety department cannot simply provide

cuts without conferring with the other partners to make sure these cuts do not

have adverse effects on one another. Additionally, Aust stated that the County

Board should look at the how they would like the County and court system to be

ran. Everyone in the County needs to have a say in this. The Finance

Department gave a two-day time frame to come up with adequate cuts. This not

conducive to strategic planning. These proposed budget cuts need to have time

for preparation in order to transition appropriately.

Committee Vice-Chair Lenert stated that the Finance Committee understands

the hardships these potential cuts could have. He was pleased to hear that four

County departments/offices were able to cut approximately $544K from the

General Fund's budget. He stated that the County Board will need to focus on

addressing the $4.5M shortfall.

Committee Member Tepe spoke on Aust's presentation at the Judicial Public

Safety (JPS) Committee on the impacts these budget cuts would have on Court

Services. He stated that the majority of the departments/offices have done a

good job staying within the budget guidelines set forth by the County Board. One

of the main points Aust made was that any implemented budget cuts would be

to personnel, who do an effective job for this County. Tepe stated that the

County needs to look at how to handle this shortfall and not look at budget cuts

of people.

Committee Member Juby spoke on her surprise of trying to implement FY2025

budget cuts, when the plan of the Board was to utilize excess reserve funds to

balance the FY2024 and FY2025 budget. She suggested that the Finance

Committee honor the decisions of the County Board to spend down the County's

excess reserves until FY2026 and find two additional revenue sources, such as

the Special County Retailers' Occupation Tax. Discussion ensued.

Fin. Exec. Dir. Hopkinson reminded the Committee that when the FY2025

budget process began, it was discussed that all departments/offices cut back on

their expenses in order to avoid budget cuts. The Board set parameters and

provisions for departments/offices to stick to, such as reducing vacancy

positions. Hopkinson shared her concerns on the Request for Proposal (RFP)

for strategic plan services. If the County decides to move forward, any

reductions in services will need to go through strategically. Much discussion

ensued.

Hopkinson stated that within this resolution there are a few items would have to

change to reflect the Finance Committee direction. In the fourth WHEREAS

clause, the amount of $15M would be changed to $19,445,661. In the seventh

WHEREAS clause, the $5M would need to be changed to $554,339.

Tepe motioned to amend this resolution to reflect the suggestions of Hopkinson

as previously stated, Lenert seconded. Motion passed by a 4-2 vote.

KC Finance and Budget Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Finance and Budget Committee

Bill Lenert

TO:

MOVER:

SECONDER:

Vern Tepe

Dale Berman, Bill Lenert, Anita Lewis, and Vern Tepe

Leslie Juby, and Jarett Sanchez

AYE:

NAY:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Authorizing the Submission to the Electors of the County of Kane by

Referendum on the April 1, 2025, Consolidated Election Ballot the Question of

Imposing a 0.75% Special County Retailers’ Occupation Tax for Public Safety

Purposes

Committee Vice-Chair Lenert motioned to amend this resolution. He stated that

in the fifth WHEREAS clause, the "for the next regularly scheduled election,

which is April 1, 2025, general election, for a 1% Special County Retailers'

Occupation Tax for public safety purposes," wording needs to be changed to "for

the next regularly scheduled consolidated election, which is April 1, 2025

election, for a 1% Special County Retailers' Occupation Tax for public safety

purposes,"General Election wording needs to be amended to Consolidated

Election ballot, Sanchez seconded. Discussion ensued. Motion carried

unanimously by roll call vote.

Committee Member Juby reviewed the projected revenue the County would

receive from implementing this sales tax. She voiced her concerns on accepting

a 1% sales tax. She questioned if the County were to adopt a 0.5% sales tax,

what the options would be to ask the public for more at a future date. She

suggested amending this resolution from 1% to 0.5%. Discussion ensued on the

County's options for increasing revenue and the proposed percentage amount.

Juby motioned to change the 1% Special County Retailers' Occupation Tax to

0.5%, Lenert seconded. Discussion ensued. Motion was rescinded.

Lenert motioned to change the amount from 1% to 0.75%, Juby seconded.

Discussion ensued. Motion passed by a 4-2 vote.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Vern Tepe

MOVER:

Bill Lenert

SECONDER:

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

Sanchez

AYE:

Vern Tepe

NAY:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Old Business

None.