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, October 23, 2024

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

Board Member Leslie Juby

Board Member Anita Lewis

Board Member Jarett Sanchez

Board Member Clifford Surges

Board Member Vern Tepe

PRESENT

Ex-Officio County Board Chair Corinne M. Pierog

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

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

Hopkinson; ITD CIO Lasky* & staff Peters; KCHD CFO Snowden*; SAO CFO Hunt*;

Spec. ASA Shepro; HRM Exec. Dir. Lobrillo; and members of the press and public.

Remote Attendance Requests

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

Approval of Minutes: August 19, 2024, August 28, 2024 & September 25, 2024

RESULT:

MOVER:

APPROVED BY UNANIMOUS CONSENT

Bill Lenert

Public Comment

Kane County resident, Jenine Mehr, stated that she is a certified financial planner. She

explained that she sent a letter to each Committee Member addressing citizens'

concerns about the County's General Fund expenditures. She stated that she is

thankful for Committee Member Juby's financial questions pertaining to the FY2025

budget. Mehr explained that she came to today's meeting to voice the concerns of tax

paying citizens and demand answers. She stated that the current spending is

unsustainable and must be reduced. She spoke on the inflation rate over the past five

years. Mehr explained that in 2014 through 2019, the County's expenses stayed

around $75M. The FY2025 budget is projected to expend $138M. If the County were to

hold at the 4% inflation rate, then FY2025 expenses should only be $99.8M. Mehr

asked where is that money going and why is it needed as Kane County's population

continues to decrease.

Treasurer's Report (C. Lauzen)

Monthly Report

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

Projected versus Promised versus Performance graph. In 2023, the County

earned approximately $17M in interest earned. He noted that the County is

projected to earn more than last year. He spoke on the interest earned collected

by local governments who share in the collective management. Lauzen

presented the Kane County Weighted Average Demand and Investment Yield.

He reviewed Kane County's Portfolio Analysis. Lauzen explained what financial

determinants/predictors are, such as inflation/economic activity, population

trends, real estate valuation and taxation trends, and education. He shared

articles from the Wall Street Journal: Stellantis' Lay-Offs of 2,451 Workers and

Stellantis Moves to Conserve Cash. Lauzen addressed questions and

comments from the Committee. Discussion ensued.

Auditor's Report (P. Wegman)

Monthly Report

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

Auditor's Office has published the 2025 Accounts Payable (AP and Procurement

Card (PCard) schedule for the upcoming year.

Approving September 2024 Claims Paid

(Madam Chairman Pierog arrived in-person at 9:18 a.m.)

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Vern Tepe

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 County's General Fund is composed of six sub-accounts, with

one being the General Account. She noted that all revenue and expenses are

contained in this account, except for the Cost-Share Drainage Fund, Special

Reserve Fund, Domestic Violence Fund, Economic Development Fund, and the

Public Building Commission. She explained that all the County's revenue and

expenses are shown in the General Fund, with the reserves spread across all

six sub-accounts. Hopkinson addressed the financials of FY2020, FY2021, and

FY2022. She noted that this month she updated the monthly report graphs to

reflect the General Fund - General Account Operating Revenues and Expenses

net of the Coronavirus Aid, Relief, an Economic Security Act (CARES) and

American Rescue Plan Act (ARPA) subsides. She explained how the CARES

Act and ARPA money affected Kane County's General Fund revenue. As the

County paid salaries, they took money from the Federal CARES Act and the

ARPA Programs, which were one-time grants, and deposited the money, like a

rebate, into the General Fund. When running these financial reports, the

expenses will reflect gross wages and credits. Hopkinson spoke on the credits

that were reflected in FY2020, FY2021, and FY2022. This is why the County's

expenses that are reported on the annual audit report show a decrease in

expenses. Hopkinson stated that this is an unfortunate part of accounting, but

this is how it is required under GAP for reporting purposes. She shared the

General Fund - General Account Analysis. The purpose of this analysis is to

report on the County's cashflow and how revenues and expenses are being

utilized throughout the year. Hopkinson noted that the use of the County's fund

balance changes from month to month based on the amount of revenue that is

collected, such as property tax revenue. She spoke on the gross expenses of

the General Account. She shared the County's Sales Tax Revenue monthly

report. She explained that the comparisons presented shows the difference from

the prior year and the difference between actual and budget. The County is

behind on budget because the County over-budgeted due to inflation. The

County is approximately $3M under in this fiscal year. Hopkinson spoke on the

Personal Property Replacement Taxes (PPRT). These taxes are distributed to

local governments based on estimates and then trued up. Hopkinson explained

that the State of Illinois distributed too much money to local governments over

the past few years. The Illinois Department of Revenue stated that due to a

substantial quantity of amended tax returns, it has resulted in an over estimated

distribution by the State. Hopkinson shared that the State will continue to revise

downward the amount of expected PPRT revenue that will be distributed to local

governments. She spoke on the County's total salaries, including overtime, by

County Office/Department. Lastly, she provided an update on the activities of

the Finance Department, such as conducting trainings for County staff. The

department has begun the implementation of financing forecasting software.

Hopkinson addressed questions and comments from the Committee. Much

discussion ensued.

Committee Member Tepe stated he is displeased by the misinformation shared

about the County's finances. He shared information on the County's General

Fund utilization of the CARES and ARPA funds. He addressed the

misinformation on the County's expenses. He reviewed the circumstances that

has caused the County to be in the current financial turmoil. Tepe shared the

Annual Budgeted Headcount by Department/Office. In 2020, there were a total

of 1,280.4 employees. In 2024, there were 1,456.5 employees, which is an

increase of 176 new employees. He spoke on the staff increase throughout

various departments/offices. Tepe stated that the County Board approved these

increases because it was in the best interest of the County. He reviewed the

United States Annual Inflation Rate and how it has affected the County's budget.

Tepe spoke on the County's next financial steps on how to move forward. He

noted that the County Board needs to work together in a bi-partisan way to

increase revenues. Discussion ensued.

New Business

Authorization to Enter into a Contract for Audit Services

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, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Approving Payment of Commercial Insurance FY2025 Including Auto, Property,

General Liability, Law Enforcement, Employment Practices, Public Official

Liability, Excess Liability and Workers Compensation, and a Service Agreement

with Acrisure Insurance

Committee Member Surges stated that the County has concluded their

relationship with an insurance professional partner. He commended this

relationship. He spoke on the insurance industry and the increases it has faced.

He spoke on the possible recommendations that the Human Services

Committee would be bringing forth.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Clifford Surges

MOVER:

Bill Lenert

SECONDER:

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

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Authorizing Flexible Benefits as Kane County’s Medical Expense

Reimbursement Plan Administrator for 2025

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, Clifford Surges, and Vern Tepe

AYE:

Authorizing Magellan Healthcare, Inc. as Kane County’s Employee Assistance

Plan Provider for 2025

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, Clifford Surges, and Vern Tepe

AYE:

Authorizing the Child Protection Data Courts Grant

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 Senior Tag Fee Correction

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Anita Lewis

MOVER:

Leslie Juby

SECONDER:

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

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Authorizing Opioid Response Community Implementation Projects

Madam Chairman Pierog inquired on where this funding would be coming from.

Fin. Exec. Dir. Hopkinson stated that grant money will be utilized. Discussion

ensued.

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, Clifford Surges, and Vern Tepe

AYE:

Authorizing Acceptance of the Medical Reserve Corps - State, Territory, and

Tribal Nations Representative Organizations for Next Generation

(MRC-STTRONG) Grant

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, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE: