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 Pierog (County Chair)

Wednesday, November 27, 2024

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

Board Member Leslie Juby

Board Member Anita Lewis

Board Member Jarett Sanchez

Board Member Vern Tepe

PRESENT

Board Member Clifford Surges

ABSENT

Ex-Officio County Board Chair Corinne M. Pierog

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

Strathmann*; Treasurer Lauzen; Auditor Wegman; Fin. Exec. Dir. Hopkinson; HRM

Exec. Dir. Lobrillo; KCHD Exec. Dir. Isaacson* & staff Snowden*; OEM Dir. Buziecki;

KCAC Admin. Youngsteadt*; Spec. ASA Shepro*; ITD staff Peters; and members of

the press and public.

Remote Attendance Requests

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

Approval of Minutes: October 23, 2024 & November 7, 2024

RESULT:

MOVER:

APPROVED BY UNANIMOUS CONSENT

Vern Tepe

Public Comment

Kane County resident and former Treasurer staff member, Connie Cain, explained that

she is a certified public accountant with 20 years of experience in banking. Additionally,

she co-founded and actively participates in a government watchdog group run by the

Illinois Policy Institute. Cain stated that she had worked for the Kane County

Treasurer's Office until last Friday. She wanted to give insight into the office's

operations for the benefit of the Finance Committee. Cain explained that on May 9,

2024, Treasurer Lauzen's lack of computer skills was evident when he could not

approve a $24M online transfer to Byline Bank, which led the bank to approve Cain to

handle the transfer in Lauzen's place. Additionally, Cain received feedback from

Vectors that stated realized gainer lost is not included in investment income. When she

confronted Lauzen about this matter, Lauzen advised Cain to leave this in the County's

investment income, anyway. On June 7, 2024 and June 10, 2024, Lauzen asked Cain

for all of her login ID's and passwords, in which she refused because sharing them

would pose a security risk. On October 9, 2024, Cain was alone with Lauzen. Lauzen

spoke to her with contempt in his voice after blaming her for replying to an email from

the Finance Department accounting manager. Due to this, she suffered emotional

distress. As result, Cain no longer felt comfortable being alone with Treasurer Lauzen.

On October 21, 2024, Lauzen called Cain to inquire about an email he received from

the Finance Department. After explaining the nature of the email, Lauzen stated that

the Finance Department staff are bad because of how they recognize revenue.

According to Gatsby rules, the finance staff is correct in their concerns. Cain stated that

her concerns are that the Treasurer's Office maintains a record of reconciliation

procedures. However, as of last Friday, five months of bank records were incorrectly

stored on the N Drive and not the shared drive, where they belong. This deviation from

office procedures without justification raises concerns about transparency and

adherence to establish procedures. When she began her employment with Kane

County, Lauzen tried to block the Finance Department from obtaining bank statements.

After she voiced her concern about denying access to these financial documents,

Lauzen raised his voice stating it was unacceptable for his assistant to have such

concerns. More recently, the Treasurer stated that he had given up on her. This

comment left Cain puzzled and left her unsure of his expectations. However, Cain finds

it important to note that the Kane County Treasurer provides bank reconciliation for the

Finance Department to ensure accuracy and accountability in the County's financial

records. Cain hopes these insights will be valuable to the Finance Committee.

Treasurer's Report (C. Lauzen)

Monthly Report

Treasurer Lauzen stated the monthly report was on file. He presented the

Projected versus Promised versus Actual Performance Interest Earned Fiscal

Years 2023-2024. He stated that the County's interest earned is in the positive

at $18M. The forecast for the interest income that will be distributed to local

taxing bodies is approximately $3.5M. Lauzen spoke on the Kane County

Weighted Average Demand and Investment Yield. He reviewed the Kane

County Portfolio Analysis Summary as of October 31, 2024. He stated that a

portion of the investments in the Mortgage Backed Security is approximately

45% of the total investment, which is producing 5.5% yield for a duration of 4.2

years through Vectors. PFMAM has 27% of the total investment, which produces

4.7% yield for a duration of 2.7 years.

Chairman Berman explained that the Finance Department is having difficulties

reconciling the County's accounts without the original bank statements or

adequate communication with the Treasurer's Office. There seems to be an

inability to communicate on the outstanding statements and information. Berman

thinks that the Treasurer needs to find out what can be done to improve

communication between his office and the Finance Department. Lauzen

explained that his office has posted bank statements from December 2023

through September 30, 2024. All of the bank statements and reconciliations

have been posted within the shared drive, which allows the Finance Department

access to these files. Lauzen reviewed the Treasurer's Office's functions

provided by state statute. All necessary information for the accountant to

reconcile are provided within the bank statements that are on the shared drive.

Lauzen spoke on the information needed by the Finance Department to

reconcile bank statements. He shared several examples of what is shared on a

monthly bank statement that can be used for reconciliation and accounting

purposes. 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. No additional report was

made.

Approving October 2024 Claims Paid

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Jarett Sanchez

MOVER:

Anita Lewis

SECONDER:

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

Sanchez, and Vern Tepe

AYE:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Finance Director's Report (K. Hopkinson)

Monthly Finance Reports

Fin. Exec. Dir. Hopkinson spoke on the bank reconciliation process that was

previously discussed. She stated that Finance staff checks the shared drive

often, in order to see which bank statements have been uploaded. As of last

week, multiple bank statements were loaded, but have since been removed.

Currently, the Finance Department does not have all of the bank statements

through September 2024. In terms of the documentation that was provided, the

bank statements do not provide all of the necessary information to perform the

reconciliation. There are transfers, in and out, of a wire clearing account and the

Finance Department is unaware where this money is going or coming from.

Hopkinson suspects this is the main reason on why the accounts are not

balancing. The department has not been able to balance with the County's

Treasurer's Office since February 2023. Hopkinson explained that Finance staff

has simply asked to speak with the Treasurer's Office's staff to have questions

answered, but has not been successful in doing so.

Hopkinson stated the monthly financial reports were on file. She presented the

Revenues - All County Funds - Budget to Actual. She explained that the

County's amended budget for FY2024 was $418M. As of last week, the County

has only brought in $251M. The big differences are related to the American

Rescue Plan Act revenue. Hopkinson presented the Expenses - All County

Funds - Budget to Actual. She stated that County's amended spending budget

for FY2024 was $418M. The year-to-date expenses are $265M. She noted that

this amount will increase through the end of the fiscal year. Hopkinson reviewed

the County's total expenditures, such as salaries and benefits, contractual

services, and capital. She noted that the majority of the County's funds will come

in under or close to budget. Hopkinson presented the General Fund Revenues -

Budget to Actual. She stated that the "Other" taxes, such as the County's sales

taxes, will fluctuate because the County accrues a few months behind. She

shared the General Fund Expenses - Budget to Actual. She reviewed the funds

that make up the general fund and what accounts come close to budget.

Hopkinson spoke on the purchasing changes that will begin January 1, 2025,

per state statute 55 ILCS 5/5-1022. County elected officials will need to do

competitive bids for any purchases over $30K. She presented the current

Finance Department organizational chart. The department eliminated a senior

accountant and hired a part-time accounting clerk. Hopkinson reviewed the

Finance Department's goals and challenges, such as catching up and being

more proactive on planning, training, researching, and documenting. Hopkinson

addressed questions and comments from the Committee. Discussion ensued.

Lauzen provided clarification on what was reported earlier in his report.

New Business

Emergency Appropriation to Amend the 2025 Budget to Reflect Amounts in

Resolutions 24-378, 24-400, and 24-463

Fin. Exec. Dir. Hopkinson provided clarification on this resolution.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Anita Lewis

MOVER:

Jarett Sanchez

SECONDER:

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

Sanchez, and Vern Tepe

AYE:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Abating the Taxes Heretofore Levied for the Year 2024 to Pay Debt Service on

$7,670,000 General Obligation Alternate Bonds (Riverboat Revenue Alternate

Revenue Source) Series 2010 of the County of Kane, Illinois

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Bill Lenert

MOVER:

Anita Lewis

SECONDER:

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

Sanchez, and Vern Tepe

AYE:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Abating the Taxes Heretofore Levied for the Year 2024 to Pay Debt Service on

$13,130,000 General Obligation Bonds (Alternate Revenue Source) Series 2020

of the County of Kane, Illinois

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, Anita Lewis, Jarett

Sanchez, and Vern Tepe

AYE:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Authorizing FY2024 Budget Adjustment for the Office of Emergency

Management

OEM Dir. Buziecki noted that this original resolution passed the Judicial Public

Safety Committee. The original resolution stated amounts for a grant that was

already received and paid out through invoices to pay the consultant that

conducted the County's Natural Hazard Mitigation Plan. Referencing an updated

resolution, he stated that the resolution will need to be amended to reflect

money not yet received. The Office of Emergency Management (OEM)

requested the remaining amount of the grant money from the state in August

2024, which has not yet been received. Currently, OEM has multiple invoices to

pay. This amendment would account for the additional $17K to be receivable on

the FY2024 budget and invoices.

Committee Member Lenert motioned to pass this resolution as amended,

Sanchez seconded. Motion carried unanimously by roll call vote.

KC Executive Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Bill Lenert

TO:

MOVER:

SECONDER:

Jarett Sanchez

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

Sanchez, and Vern Tepe

AYE:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Emergency Appropriation for Transfer of Funds from the Longmeadow Debt

Service Fund #624 to the Transportation Sales Tax Fund #305

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Jarett Sanchez

MOVER:

Anita Lewis

SECONDER:

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

Sanchez, and Vern Tepe

AYE:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Emergency Appropriation for Transfer of Funds from the Mass Vaccination Fund

#354 to the General Fund - General Account #001

Fin. Exec. Dir. Hopkinson explained that the Federal Emergency Management

Agency (FEMA) grants are different from normal ones, in which grant money is

applied for after the fact. The Finance Department has been cleaning up funds

that were developed during the COVID Pandemic. Recently, the County

received a check of $555K from FEMA. She noted that the County Board will

see additional resolutions like this one over the next couple of months where the

General Fund had advanced funding to other County funds in order to cover

expenses. Due to the County receiving the FEMA grant money, the funding can

be added back in to the General Fund. Hopkinson addressed questions and

comments from the Committee. Discussion ensued.

KC Executive Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Bill Lenert

TO:

MOVER:

SECONDER:

Jarett Sanchez

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

Sanchez, and Vern Tepe

AYE:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Emergency Appropriation for Transfer of Funds from the General Fund -

General Account #001 to the Sheriff’s Detail Escrow Fund #702

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, Anita Lewis, Jarett

Sanchez, and Vern Tepe

AYE:

Clifford Surges, and Corinne M. Pierog

ABSENT:

Emergency Appropriation to Approve Agreement with Lauterbach & Amen for

Accounting Services

Fin. Exec. Dir. Hopkinson provided additional information on this resolution. She

addressed questions and comments from the Committee. Discussion ensued.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Vern Tepe

MOVER:

Jarett Sanchez

SECONDER:

Dale Berman, Leslie Juby, Anita Lewis, Jarett Sanchez, and Vern

Tepe

AYE:

Bill Lenert

NAY:

Clifford Surges, and Corinne M. Pierog

ABSENT:

10.

11.

Old Business

None.

Reports Placed On File