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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 Roth (County Vice Chair)

and Pierog (County Chair)

Wednesday, May 28, 2025

9:00 AM

County Board Room

Call To Order

Chairman Berman called the meeting to order at 9:02 AM.

Roll Call

Board Member Dale Berman

Board Member Bill Lenert

PRESENT

Board Member Leslie Juby

Board Member Jarett Sanchez

Board Member Vern Tepe

Ex-Officio County Board Vice Chair Bill Roth

Ex-Officio County Board Chair Corinne M. Pierog

Board Member Clifford Surges

REMOTE

ABSENT

Board Member Anita Lewis

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

Strathmann*; Treasurer Lauzen; Auditor Wegman & staff Lara; Fin. Exec. Dir.

Hopkinson; SA Mosser & staff Frank, Ford, Ortiz, Hunt*; Sheriff Hain & staff Catich;

KCHD Exec. Dir. Isaacson* & staff Snowden*; ITD CIO Lasky* & staff Kash; SOA

Armstrong; OCR Asst. Dir. Beck*; Environ. & Water Res. Dir. Wollnik & staff Powell;

and members of the press and public including Elgin Mayor David Kaptain and City

Manager Rick Kozel.

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 Member Surges

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

Approval of Minutes: April 23, 2025 & May 1, 2025

RESULT:

MOVER:

APPROVED BY UNANIMOUS CONSENT

Vern Tepe

Public Comment

Kane County resident, Jenine Mehr, referenced agenda item 9H; a resolution

approving a letter of support for a 12-year extension request for the Central Area TIF

(Tax Increment Financing) District within the City of Elgin, Illinois. She noted that this is

a letter that would be signed, if approved, to show the Kane County Board's support on

extending the TIF for an additional 12 years. She stated that this letter of support is a

political endorsement. She explained what a TIF is and why it matters. She stated that

TIFs were created to help struggling neighborhoods. However, today, TIFs are often

used to redirect public tax dollars away from schools, counties, libraries, and pensions.

Instead, these tax dollars are being funneled into city controlled development accounts.

Mehr stated that this one TIF, if extended, would cost Kane County Government

$4.6M, and the Kane County Forest Preserve and Pension Funds $1.9M. This is a total

of $6.5M that would be diverted away from essential public services, just to support

projects chosen by the City of Elgin. She explained that the County Board cannot

approve or deny the TIF, but they are being asked to bless the extension. If the County

Board approves this, they are saying to residents that they support this continued

diversion of tax revenue away from the County's budget and people. Mehr urged the

County Board not to sign this resolution. She explained that the County Board is

responsible for Kane County's financial health, not Elgin's development. In a time of

budget shortfalls, deteriorating infrastructure, and unfunded pensions, the County must

not support policies that make this worse. Mehr asked the Board to send the message

to Elgin and Illinois that this Board will not endorse more taxpayer give-a-ways. She

was puzzled as to why Madam Chairman Pierog would put forth such a declaration of

support to extend the TIF for 12 more years, especially when it drains Kane County's

budget. However, she explained that all the County building projects that Pierog has

proposed, such as the new Public Health building, were not approved. Mehr explained

that even though these building projects were not approved, Pierog is still beholdened

to the construction firms and other businesses that have supported her campaigns.

Frank Esposito, St. Charles, spoke on the FY2026 Budget. He mentioned that he had

trouble downloading today's 900+ page agenda packet. (Madam Chairman Pierog

arrived in-person at 9:07 a.m.) He referenced Resolution 9I: Approving a Balanced

Budget for Kane County FY2026 General Fund - General Account. He incorrectly

assumed that this resolution was the approval of the FY2026 Budget. However, he was

advised that this resolution was to state that the County Board was going to present a

balanced budget for FY2026. Esposito stated that he was at the last Special Finance

Committee meeting. He understood that notifications were going to be sent out to

department heads asking them for a projection of their budget with a 10% reduction

versus the expenses of FY2024. He noted that this is a great way to start the budget

process. He is interested in seeing the departments' reports of what they are able to

do. He wished there was a way for the general public to be able to see this kind of

information before it comes before the Committee. This would allow the public to better

understand where or if managers cut back. Esposito stated that he will continue to

attend these meetings to find out what will occur. He wanted to ensure that everyone

understands that budget cuts have to be made.

Brian Anderson, Sugar Grove, explained that at the May 20, 2025 Special Finance

Committee meeting, he recommended that all Kane County Board committees receive

a monthly dashboard report. He spoke on when his son-in-law asked him for his

approval to marry his daughter. His son-in-law provided Anderson with a PowerPoint

presentation that broke down the wedding budget. Anderson presented his son-in-law

with his personal budget for the wedding and noted that everything outside of the

allotted budget would be up to them. He stated that this reminds him of the Kane

County budget. He noted that everyone needs to work within the budget. Anderson

stated that the Kane County Board does not have a lot of responsibilities, but one is the

annual budget. The County Board needs to allot money to departments and let each of

them know that is all the County has to provide. Anderson explained that he spent

seven years as a volunteer at Wayside Cross Missions, where broken men are

recovering from addiction. This reminds him that Kane County has a spending

addiction. Anderson stated that this Board needs to make the financial decisions now.

He noted that it is time for the County Board to impose the 10% reduction and acquire

an Attrition Program. He commended Fin. Exec. Dir. Hopkinson for her monthly

financial report. He noted that a monthly dashboard report needs to be developed to

share financial data with the County. (Committee Member Sanchez arrived in-person at

9:12 a.m.) If the County does not have the correct data, then no effective decisions can

be made. Anderson stated that in the May 20, 2025 Special Finance Committee

meeting agenda packet, there was a PowerPoint presentation on SMART GOALS. He

urged the Committee to read through it.

William Koehl, Geneva, thanked the Committee for their public service. He stated that it

is a hard and difficult time in the world today and the work done by the Kane County

Board is frequently underestimated and unappreciated. He thanked everyone for

showing up everyday and making the hard decisions. Also, Koehl mentioned that there

are community members that are working hard to ensure that the work that is being

done is shared throughout the County, especially with the County financial crisis. He

spoke on the negative information shared on County taxes. It is often times elected

officials that raise taxes to provide the services that all constituents need or enjoy.

Koehl read aloud a flyer that reminds everyone of the purpose of taxes and where the

funding is goes to, such as public safety, transportation and roads, health services,

senior programs, voter registration, election security, veterans' assistance, farmland

protection, and economic development. These are the items that tax payers dollars

support. Koehl hopes that the rational and considered opinions that will be shared

today are supported by Kane County residents who enjoy living in Kane County.

Kane County resident, Cathy Flesburg, spoke on the FY2026 Budget. She explained

that she used to revise her personal budget every week. She stated that she could not

believe departments were creating their annual budget without any direction. She

learned that the County Board did not realize the financial issues until it was too late,

due to the lack of information provided. Flesburg spoke on the monthly financial reports

that are shared at each committee meeting. She explained that a corporation does not

break down their financial information down by departments. This causes the Board to

not see the financials as a whole and the upcoming issues. Flesburg stated that budget

cuts need to be made. She referenced the Coroner's Office renovation project. She

stated that all capital projects need to be held. She voiced her confusion with the

three-year phase plan in order to cut expenses. She explained that the County has

utilized reserves for the past two years, which has caused it to be depleted. She stated

that when the County Board is preparing the budget, they need to look into strategic

goals. The first goal should be to make cuts and not raise taxes. Secondly, the County

needs to get the reserve amount back to where it should be.

Treasurer's Report (C. Lauzen)

Monthly Report

Treasurer Lauzen stated the monthly report was on file. On page five of the

Committee's agenda packet, Lauzen explained that the interest income earned

for April 2025 was $1.4M. Referencing page seven, Lauzen shared a

comparison between the interest earned in April 2024 versus April 2025. He

noted that the County made slightly more interest income on less cash

balances. Lauzen presented a graph depicting the Actual Performance Interest

Earned Fiscal Years 2023 to 2025. He stated that this graph shared the amount

on interest income is beginning to decrease with less cash balances and

variation of interest rates. He shared a graph depicting the Kane County

Weighted Average Demand and Investment Yield. He explained that this graph

shows the performance against benchmarks, both short-term and long-term. He

stated that there is a lot of volatility and little change. Lauzen explained that the

County needs to use interest income. He noted that there were two opinions

shared by the Kane County State's Attorney's Office (SAO) and an outside law

firm. Within these reports, there was a spreadsheet done by Accounting that

listed approximately 250 funds, the allocation of interest income to these funds,

and the categorization of where interest income can be utilized legally for the

County's General Fund. Lauzen presented a graph depicting the Cumulative

Interest Earned for Fiscal Years 2021 though 2025. He stated that there has

been over $45M in interest earned from November 30, 2022 to November 30,

2025. He questioned what the County has to show for this amount of money. He

explained that the Treasurer's Office checks each one of the banks that have

deposits of property taxes and interest investments to make sure they are not

included on the Veribanc Verification list. Lauzen spoke on the County's

Investment Manager's projection for next year. The investment manager

provided a range of $10M to $13M of interest income. Lauzen's projection is

closer to the $10M due to the usage of cash balances and interest rate

fluctuations.

Auditor's Report (P. Wegman)

Monthly Report

Auditor Wegman stated the monthly report was on file. She introduced County

Staff Auditor Porfirio Lara. Wegman addressed questions and comments from

the Committee. Discussion ensued.

Approving April 2025 Claims Paid

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Jarett Sanchez

MOVER:

Vern Tepe

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Finance Director's Report (K. Hopkinson)

Monthly Finance Reports

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

presented the charts and graphs that depicted the County's revenues from

FY2024 and FY2025 to date. She stated that compared to the prior year, the

County is ahead of budget. She provided the County's position with tax revenue

received. She spoke on the Local Use Tax. She explained that there was a

change in the law that began in January 2025. This change (Public Act

103-0983) impacts the number of transactions that can be taxed. After

conversations with a representative at the Illinois Department of Revenue,

Hopkinson stated that the state has reduced the number of transactions that

qualify as Use Tax. She provided a graph that depicted the statewide impact on

the Use Tax. The Use Tax collected across the state has decreased by $19M.

She noted that revenue is up across the state, but since the County does not

receive the Municipal Sales Tax, Municipal Home Rule Sales Tax, and the

Municipal Non-Home Rule Sales tax their revenue is down. Hopkinson shared a

chart that showed Kane County's Sales Information. She explained that the

Local Use Tax and the County's Cannabis Tax has drastically decreased.

Hopkinson explained that the Finance Department will be filing an extension to

complete the annual audit. She noted that Finance staff is still trying to collect

information from departments to complete the audit. Lastly, Finance is working

with other departments to assist them in entering their information in the

financing software. Hopkinson addressed questions and comments from the

Committee. Much discussion ensued.

New Business

Authorizing the 2025 AOIC Modernization Funding Allocation

Committee Member Lenert stated that this resolution is being funded through a

grant and that all paperwork is attached to the packet.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Jarett Sanchez

MOVER:

Bill Lenert

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing Transfer of Appropriations and Budget Adjustment for Payroll

Coordinator Position in the Kane County State’s Attorney’s Office

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Leslie Juby

MOVER:

Jarett Sanchez

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing Acceptance of Justice Assistance Grant and Budget Adjustments

Relating to Grants for the Kane County State’s Attorney’s Office

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Bill Lenert

MOVER:

Leslie Juby

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing Amended Contract with Axon Enterprises, Inc. for Electronic

Discovery Programs for the Kane County State’s Attorney’s Office

SAO Dir. of Operations Ortiz stated that during the Judicial Public Safety

Committee meeting, he mentioned that the difference between the current

contract amount and the amended contract amount was $36K per year. He

explained that he accidentally added up 2022, 2023, and 2024, in which the

County has already paid out. He stated that the actual difference, if the new

contract is approved, is $892K, with an average increase of $127K. He

explained that the contract included in today's agenda was back loaded, which

could help the County financially. He stated that the last payment, which is due

December 2031 is $612K. This will be a difference compared to the December

2031 of the original contract of $326K. Ortiz addressed questions and comments

from the Committee.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Vern Tepe

MOVER:

Jarett Sanchez

SECONDER:

Dale Berman, Jarett Sanchez, Clifford Surges, and Vern Tepe

Bill Lenert, and Leslie Juby

AYE:

NAY:

Anita Lewis

ABSENT:

Approving a Weatherization Rebate Program for Kane County Farmers

KC Executive Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Leslie Juby

TO:

MOVER:

SECONDER:

Bill Lenert

Dale Berman, Bill Lenert, Leslie Juby, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing Funding of the Kane County Forensics Lab Renovation Project in

the Kane County Sheriff’s Office and Budget Adjustment

Committee Member Juby stated that this Forensic Lab is being covered by the

Opioid Settlement Fund.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Leslie Juby

MOVER:

Vern Tepe

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing Amendment to Intergovernmental Agreement with the City of St.

Charles for Actions Related to Management of the St. Charles Housing Trust

Fund

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Jarett Sanchez

MOVER:

Leslie Juby

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Approving a Letter of Support for a 12-Year Extension Request for the Central

Area TIF District within the City of Elgin, Illinois

City of Elgin Manager, Rick Kozel, stated that the City has requested the County

Board's support in the assistance of the extension of the Central Area TIF Fund

from a current 23-year term to an additional 12-year term. Kozel explained that

Elgin is seeking to extend it for 12 years to fully realize the benefit of the bargain

of the original 23-year term. He stated that combined with declining revenue,

economic recession, and the COVID Pandemic, there was a loss of nine years

of redevelopment. He explained that the 12-year extension would get the City

back on track with redevelopment in downtown on what was originally tended for

the 23-year contract. Kozel stated that the purpose of a TIF is to increase the

property tax base. It is designed to encourage private development within the

community, which generates more wealth and lowers the property tax burden on

associated developments. Kozel listed the redevelopment that has occurred

within the 23-year TIF, such as a $55M investment for the Fountain Square

mixed-use area along the Fox River and $22M infrastructure improvements.

What is left to accomplish is the development of 350 dwellings across the street

from the Gail Borden Library. This is another opportunity to bring millions of

dollars of investment that will reduce the tax burdens of County residents. Kozel

noted that the City of Elgin's use of the Central Area TIF has been a transparent

process. He stated that everything has been vetted by the City Council and

transparency discussions on all economic development agreements have been

held. This request for the 12-year extension is similar to the TIF request that was

granted to St. Charles. Kozal explained that Elgin has the support of all affected

taxing bodies. Additionally, Elgin is willing to provide a 10% sharing of the

increment surplus with all affected taxing bodies during the time period, unlike

St. Charles. Kozel, SOA Armstrong, and Elgin Mayor Dave Kaptain addressed

questions and comments from the Committee. Much discussion ensued.

Motion failed by a 2-2 vote, with two abstains.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Vern Tepe

MOVER:

Jarett Sanchez

SECONDER:

Dale Berman, and Jarett Sanchez

Bill Lenert, and Leslie Juby

Anita Lewis

AYE:

NAY:

ABSENT:

ABSTAIN:

Clifford Surges, and Vern Tepe

Approving a Balanced Budget for Kane County FY2026 General Fund - General

Account

Committee Member Juby stated if this resolution is approved, all budget cuts

would be made in one year. She noted that the Committee directed the Finance

working group to begin asking departments to cut 10% from their General Fund

budget. She explained that the requested 10% would not give the County

enough money in cuts during the first year. Therefore, to approve this resolution

would be a vote against the Committee's decision, in which she cannot support.

Committee Member Sanchez explained that the THEREFORE, BE IT

RESOLVED clause states, "should reduce the amount". He inquired what lead

to this resolution being drafted besides being a part of the normal budgetary

conversations.

Chairman Berman explained that County Board Member Iqbal wanted to ensure

that everyone is aware of the Board's responsibility is to come up with a

balanced budget. Discussion ensued.

Motion failed by a 3-3 vote.

KC Executive Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Bill Lenert

TO:

MOVER:

SECONDER:

Leslie Juby

Dale Berman, Bill Lenert, and Clifford Surges

Leslie Juby, Jarett Sanchez, and Vern Tepe

Anita Lewis

AYE:

NAY:

ABSENT:

Authorizing Execution of Collective Bargaining Agreement (Kane County

Sheriff’s Office Peace Officers)

Sheriff Hain explained that his office has six collective bargaining agreements

with over 300+ employees represented by them. He noted that in the last seven

years, his office has been good financial stewards of the budget. He provided

salary comparisons for peace officers from surrounding counties. He explained

that the Kane County Sheriff's Office (KCSO) has 95 peace officers, whose

salaries top out at $105K, which is significantly less than others. He noted that

the KCSO is doing a lot more with a lot less. With a County population of 500K+

residents, the KCSO is supposed to have 124 officers. Hain spoke on the

difficulties of personally assisting officers at all hours and the worries of staffing.

He explained the importance of compensating staff properly. He spoke on the

danger of minimal officers apprehending dangerous criminals. Hain stated that

this is a three-year contract. He explained that the expenses for FY2025 and

FY2026 would be absorbed into the allotted budget. However, FY2027 will be a

difficult financial year as many officers will be at the topped out range. Hain

noted that this is an arbitration contract, if needed. Hain addressed questions