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, July 24, 2024

9:00 AM

County Board Room

Call To Order

Chairman Berman called the meeting to order at 9:01 AM.

Roll Call

Board Member Dale Berman

Board Member Bill Lenert

Board Member Leslie Juby

Board Member Jarett Sanchez

Board Member Clifford Surges

Board Member Vern Tepe

PRESENT

Ex-Officio County Board Chair Corinne M. Pierog

Board Member Anita Lewis

ABSENT

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

Strathmann; Treasurer Lauzen; Deputy Auditor Laird; Fin. Exec. Dir. Hopkinson & staff

Ramer-Holmes, Kietzman; ASA Frank, Ford, Cermak; Spec. ASA Shepro; ITD/BLD

Exec. Dir. Fahnestock & staff Peters; HRM Exec. Dir. Lobrillo; KDOT Deputy Dir.

Rickert*; KCHD Exec. Dir. Isaacson & staff Snowden*; and members of the press and

public.

Remote Attendance Requests

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

Approval of Minutes: June 26, 2024

RESULT:

MOVER:

APPROVED BY UNANIMOUS CONSENT

Vern Tepe

Public Comment (Agenda Items)

None.

Public Comment (Non-Agenda Items)

None.

Treasurer's Report (C. Lauzen)

Monthly Report

(Madam Chairman Pierog arrived remotely at 9:03 a.m.)

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

Projected versus Actual Performance - Interest Earned Fiscal Years 2023-2024.

The projected interest earned for 2023 was $1.79M, the promised was $3.79M,

and the actual performance before accrual adjustments was $16.92M. Lauzen

stated that in 2024, each month has accumulated $1M to $1.5M of interest

income the County could utilize. He referenced the Kane County Weighted

Average Demand and Investment Yield graph. This graph depicts the County's

performance against short-term bench marks. Lauzen explained the Demand

Account C, highlighted in blue, demonstrated that Kane County's performance

short-term money, which is money the Treasurer is allowed to invest on behalf of

the County, is over the benchmarks. He added that the County is receiving small

returns on tax free municipal bonds, which was caused by the low interest rates

back when these bonds were purchased. Lauzen spoke on the challenges of

developing the annual budget. He explained that there were two hurdles that he

faced when compiling the Treasurer's FY2025 Budget. The County Board

instructed all County Departments/Offices to keep contractual and commodities

at 3% or under and salary wages under 2.5%. Lauzen reported that the

Treasurer's Office has met these requests. Lastly, Lauzen responded to the

constructive criticism provided at the last Finance Committee meeting by public

speakers. He stated that he respects what each speaker shared. He addressed

the complaints made against the sources he provided in the last Committee

meeting agenda packet on bi-partisan sources. Lauzen explained the difference

in sources, such as compilers, presenters, and messengers. He reviewed

determinants and predictors that could directly affect Kane County regarding

sources. He shared his personal bi-partisan credentials. He spoke on the

historical County Board approach of shared authority as of 2016, such as

keeping a bi-partisan balance.

Auditor's Report (P. Wegman)

Monthly Report

Deputy Auditor Laird stated that the monthly report was on file. No additional

report was made. (Committee Member Surges arrived in-person at 9:17 a.m.)

Approving June 2024 Claims Paid

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Leslie Juby

MOVER:

Bill Lenert

SECONDER:

Dale Berman, Bill Lenert, Leslie Juby, and Vern Tepe

Anita Lewis, and Jarett Sanchez

Clifford Surges

AYE:

ABSENT:

ABSTAIN:

FY2025 Auditor Budget Reports

Deputy Auditor Laird stated the FY2025 Auditor Budget was included. He stated

that all questions on the budget could be forwarded to Auditor Wegman.

Finance Director's Report (K. Hopkinson)

Monthly Finance Reports

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

highlighted a newly added report: General Fund - General Account Analysis.

This report will show the amount of the fund balance the County is using at the

end of each month. In the beginning of July, the County was utilizing $12M of

fund balance to pay for expenses. Hopkinson noted that this number will change

due to revenues coming in at different times. When developing the FY2024's

budget, the County budgeted for $10M in fund balance to be used. (Madam

Chairman Pierog arrived in-person at 9:19 a.m.)

FY2025 Finance Department Budget Presentation

Fin. Exec. Dir. Hopkinson presented the FY2025 Finance Department's Budget.

She reviewed the Finance Department's Organizational Chart. The department

currently has one vacant Payroll Clerk position. Hopkinson shared the Finance

Department's Budget Comparison from 2022 to 2025. She spoke on contents of

the budget, such as salaries and wages, contractual services, commodities, and

capital. (Committee Member Sanchez arrived in-person at 9:21 a.m) The

Finance Department's total FY2025 budget is $1,534,945, with $1,149,682

expended on salaries and wages. Hopkinson shared the Department's mission

and outcomes for FY2025, such as maintaining an excellent credit rating for the

County, improve communication, transparency, and disclosures of Kane

County's financial information, and ensure timely and accurate processing of

payroll. Hopkinson addressed questions and comments from the Committee.

FY2025 Kane County Draft Budget Presentation

Fin. Exec. Dir. Hopkinson presented the FY2025 Kane County Draft Budget -

General and Related Payroll Funds - Reserve Targets. She stated that many of

County departments/offices have been presenting their budgets to their standing

committees over the past month. Essentially, most offices/departments have

submitted their budgets. There are debt service funds and the health insurance

fund that still need to be addressed. Hopkinson stated that she is seeking

guidance from this Committee and the County Board on how to proceed. She

reviewed the County's General Fund's Forecast and Reserve Target. For

FY2025 the projected expense amount is $144,104,658. The draft budget allots

$35,003,771 from the General Fund's fund balance to be utilized to balance the

budget. Hopkinson noted that in 2023 and 2024, the County did not transfer

funds to the Capital Project Fund for buildings, maintenance, and technology

projects. She shared the General Fund's sub-accounts projected fund

balance/reserves, revenues, and expenses from 2022 to 2027. She explained

that by 2027 the County's General Account will be negative -$35,482,184, with

only $41,234,778 in the 90-day reserve target. This will occur if another revenue

source and/or budget cuts are not established. Hopkinson addressed questions

and comments from the Committee. Much discussion ensued on the County

Board's options to address the budget issues and the lack of planning the

standing committees face when reviewing County Departments/Offices' budgets.

The Committee provided consensus to redirect all County Departments/Offices

to present a budget within the County Board's directives of a 3% increase for

contractual services/commodities and 2.5% increase for salaries and wages.

Committee Member Juby requested information on which departments/offices

went over the County Board's directives and the percentage of each

departments/offices' budget that comes from the County's General Fund.

Hopkinson asked the Committee for a budget timeline to address the additional

directions of this Committee. The Committee decided to schedule a Special

Finance Committee meeting to address the Committee's additional requests, in

order to move forward on balancing the FY2025 budget without the use of

reserves. The Finance Committee decided to set a Special Finance Committee

meeting for Tuesday, July 30, 2024 at 9:00 a.m.

Hopkinson continued with sharing the IMRF Fund - Forecast and Reserve

Target. She noted that the County is not only draining the General Fund, but the

IMRF and FICA funds, as well. By 2027, the IMRF Fund Reserves would be

depleted by $1,469,093. Hopkinson stated to address this the County would

need to re-allocate property taxes and/or increase the tax levy. Lastly,

Hopkinson reported that she received an e-mail explaining that the partial

defeasents of the Kane County Toll Revenue Bonds have occurred. The County

funded $18.2M, received the $17.5M grant, and took interest-earned funds and

wired it to the Kane County Treasurer's Office. She commended the Treasurer's

Office for their assistance with completing the proper paperwork. Hopkinson

explained that the Kane County Division of Transportation (KDOT) will no longer

have to make debt service payments moving forward.

10.

New Business

Budget Adjustments

Approving Agreement with EAG Great Lakes, LLC dba Eisneramper to Provide

Professional Software Implementation Services to the Finance Department and

Budget Transfer

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:

Approving Purchase from Workday Adaptive Planning of Pleasonton, California

for Access to and Use of Data Analytics and Budgeting/Forecasting Software

and Budget Transfer

(Madam Chairman Pierog left at 10:16 a.m.)

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:

Emergency Appropriation for Payment to the Escrow Agent for Partial

Defeasance of the Longmeadow Toll Bridge Revenue Bonds

Committee Member Surges spoke on the use of the word "emergency".

Fin. Exec. Dir. Hopkinson stated that this resolution is a housekeeping item. She

explained the reasons as to why "Emergency Appropriation" is used. She stated

that State Statute utilizes this wording in order to make any adjustments to an

already set budget.

KC Executive Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Jarett Sanchez

TO:

MOVER:

SECONDER:

Leslie Juby

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

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Contracts and Purchases

Approving FY25 Operations and Maintenance Agreement with USGS for the

Stream and Rainfall Gages

Committee Member Juby motioned to remove this resolution for further standing

committee discussion, Lenert seconded. Motion carried unanimously by voice

vote.

KC Energy and Environmental Committee

RESULT:

MOVER:

SECONDER:

HELD OVER

Leslie Juby

Bill Lenert

Authorizing ERAP2 Funding for External Housing Stabilization Services

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, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing a Contract for Kane County Building Management Pavement

Management Services with Patriot Maintenance, Inc. (BID# 24-036-TS)

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:

Authorizing a Contract with Misfits Construction for the Construction of the

Chisholm Trail Drainage Project for $183,205

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:

Authorizing a Contract Renewal for Kane County Janitorial Supplies with

Warehouse Direct (BID# 22-018)

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:

Metro West Contract Renewal for 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, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing Renewal of a Support Services Contract for the Homeless

Management Information System

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:

Authorizing an Intergovernmental Agreement with Carroll County for Juvenile

Detention 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, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing an Intergovernmental Agreement with Montgomery County for

Juvenile Detention Services

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, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing an Intergovernmental Agreement with Shelby County for Juvenile

Detention Services

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, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing Purchase of Audio-Visual Equipment and Supplies from Conference

Technologies Inc. dba CTI

KC Finance and Budget Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Finance and Budget Committee

Bill Lenert

MOVER:

Jarett Sanchez

SECONDER:

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

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Authorizing Purchase of Audio-Visual Equipment and Supplies for the 16th

Judicial Circuit Court from Conference Technologies Inc. dba CTI

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:

Authorizing the Purchase of Three Vehicles for the Kane County Sheriff’s Office

Committee Member Juby motioned to amend this resolution changing the fund

line item from 125.800.810.70070 Automotive Equipment to fund line item

128.380.395.70070 Automotive Equipment, Sanchez seconded. Motion carried

unanimously by voice vote.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Jarett Sanchez

MOVER:

Clifford Surges

SECONDER:

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

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

11.

12.

Old Business

None.

Reports Placed On File

RESULT:

MOVER:

APPROVED BY UNANIMOUS CONSENT

Jarett Sanchez

13.

14.

Committee Chairman's Comments

None.

Executive Session

The Finance Committee entered into Executive Session at 10:29 a.m. to discuss the

release of closed session minutes on a motion made by Lenert, seconded by Juby.

Motion carried unanimously by roll call vote.

RESULT:

APPROVED BY ROLL CALL VOTE

Bill Lenert

MOVER:

Leslie Juby

SECONDER:

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

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT:

Release of Closed Session Minutes

15.

Open Session

The Committee returned to Open Session at 10:34 a.m. on a motion made by

Sanchez, seconded by Juby. Motion carried unanimously by voice vote.

RESULT:

APPROVED BY VOICE VOTE

Jarett Sanchez

Leslie Juby

MOVER:

SECONDER:

Vote on Release of Closed Session Minutes

RESULT:

MOVER:

APPROVED BY ROLL CALL VOTE

Vern Tepe

Leslie Juby

SECONDER:

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

Surges, and Vern Tepe

AYE:

Anita Lewis

ABSENT: