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 Roth (County Vice Chair)

and Pierog (County Chair)

Thursday, December 19, 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

PRESENT

Board Member Leslie Juby

Board Member Anita Lewis

Board Member Jarett Sanchez

Board Member Clifford Surges

Board Member Vern Tepe

Ex-Officio County Board Vice Chair Bill Roth

Ex-Officio County Board Chair Corinne M. Pierog

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

Treasurer Lauzen; Auditor Wegman; Fin. Exec. Dir. Hopkinson & staff Marszalek,

Lombardi; KDOT Deputy Dir. Rickert; Sheriff Chief of Admin. Catich; ITD CIO Lasky &

staff Peters; GIS Tech. Chief Dir. Lebo; SAO staff Frank, Vargas*, Hunt*; KCAC

Admin. Youngsteadt*; and members of the press and public.

Remote Attendance Requests

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

(Committee Member Sanchez arrived in-person at 9:02 a.m.)

(Madam Chairman Pierog arrived remotely at 9:02 a.m.)

Approval of Minutes: November 27, 2024

RESULT:

MOVER:

APPROVED BY UNANIMOUS CONSENT

Bill Lenert

Public Comment

None.

Treasurer's Report (C. Lauzen)

Monthly Report

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

photograph of the Treasurer's Office staff. He stated that on Tuesday,

December 18, 2024, the Treasurer's Office held their Christmas party. He spoke

on the activities of the party. Lauzen reviewed the Projected versus Promised

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

projected interest earned for FY2023 was $1.8M. The actual interest collected

was $16.9M in FY2023. In December 2023, the interest collected was $1.7M,

For the full fiscal year of 2023, the County collected approximately $21.6M of

interest income. Lauzen explained that $18.1M stays with the County and $3.5M

is distributed to the different local taxing agencies. He estimated that the County

could utilize approximately 50%-60% of the interest income to offset expenses.

He reviewed the Kane County Weighted Average Demand and Investment

Yield. He explained that this graph depicts that the County is performing above

standards. He reviewed the contents of this graph. Lauzen spoke on the Kane

County - Portfolio Analysis - Summary as of November 30, 2024. He explained

that the County's bond duration has been stretched out, in order to collect the

largest interest rate possible for a longer period of time. Overall, the County is

earning 4.65% for an average of 2.3 years. Referencing Vectors Asset

Management, the Mortgage Backed Security sector is earning 5.41% for 3.96

years. Lauzen reviewed a letter that stated that for the past 11 consecutive

quarters, Vectors Asset Management has been named to the PSN Top Guns

List of Best Performing Strategies for Quarter Three of 2024. Lauzen explained

that this past month, the Treasurer's Office met with the County's operating

bank, JPMorgan Chase. He spoke on the misinformation of the County being

fired as a client from First American Bank. Lastly, Lauzen reviewed a memo

from CashVest. He explained that CashVest reviews all of the County's bank

accounts to ensure all the bank calculations are correct. As of December 3,

2024, they were able to find that the County will generate an additional revenue

of $112,706. Lauzen addressed questions and comments from the Committee.

Discussion ensued. (Madam Chairman Pierog arrived in-person at 9:13 a.m.)

Auditor's Report (P. Wegman)

Monthly Report

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

February 2024 to October 2024, the County received a procurement card rebate

of $9,984 from Chase Bank. In contrast, the County collected in 2023 a rebate

from Fifth/Third Bank of $10,997. Secondly, Wegman explained that her office

audits all of the County's accounts payable and payroll. She recognized and

commended the work of the Payroll Department.

Approving November 2024 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, 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

seconded the work of the Payroll Department. She provided additional

information these staff members face with the end of the year payroll contents,

such as the cost-of-living increases. Hopkinson reviewed the General Fund -

General Account Analysis. She noted that year-end transactions would continue

to be entered until late January 2025. As of last week, the County's General

Fund is running over budget. This is due to the County underestimating the

amount of revenue to be received in FY2024. Hopkinson noted that this amount

will fluctuate as the state sales tax information is received. Currently, the budget

is depicting that approximately $16M in fund balance would be utilized to

balance the FY2024 budget. The County only accounted to use $10M in fund

balance. Hopkinson anticipates that the County will have to utilize approximately

$14M in reserves to balance once the sales tax revenue is received. She stated

that the Finance Department had their annual audit kick-off meeting last week.

She noted that the auditors will be onsite in January and March 2025.

Additionally, the County received nine responses from agencies who were

interested in developing a County Strategic Plan. Once these responses were

received, a selection committee reviewed each of them and selected agencies

for an oral presentation. After the review of the oral presentations, Hopkinson

anticipates that a vendor will be introduced to the Finance Committee, next

month, for approval. Hopkinson addressed questions and comments from the

Committee. Much discussion ensued.

New Business

Emergency Appropriation for Transfer of Funds from the FEMA PA Fund #358

to the General Fund - General Account #001

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, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Emergency Appropriation and Budget Adjustment for the Coroner DOJ Morgue

Tech Grant

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, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Authorizing New Account Code and Reclassification of Budgeted Amounts for

Coroner’s Health Opiate 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:

Reappropriating Funds and Amending Resolution No. 23-76 - Approving a

Contract for Construction with Curran Contracting Company of Crystal Lake,

Illinois for Dauberman Road Extension, Kane County Section No.

15-00277-01-BR

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, Clifford Surges, and Vern Tepe

AYE:

Authorizing Execution of Collective Bargaining Agreement Between County of

Kane, Kane County Sheriff, and Policeman’s Benevolent Labor Committee

(Kane County Sheriff’s Office Maintenance and Janitor Unit)

Committee Member Tepe asked for clarification on the financial impact of this

collective bargaining agreement (CBA). Sheriff's Office Chief of Administration,

Catich, explained that the previous contract for the Kane County Sheriff’s Office

Maintenance and Janitor Unit expired in December 2022. The current contract

that has been agreed upon is from January 2023 to November 2025. The

contract would allow an increase of 4.12% in 2023, 3% in 2024, and 3% in 2025.

The total increase and retro pay would be approximately $15K.

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:

Acceptance and Use of Trust Donation Made to Animal Control

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, Clifford Surges, and Vern Tepe

AYE:

Authorizing Contract Extension of Aerial Orthoimagery

Committee Member Juby asked for clarification on the need for aerial

orthoimagery. GIS Dir. Lebo stated that the County has had a long history of

aerial imagery. He noted that the Geographic Information System (GIS)

Department manages this contract. He stated that the bid for this service was

conducted two years ago, and this resolution is an extension of the current

contract. He explained that in order to capture the aerial imagery, a plane flies at

2K feet. Images are captured for the entire County and is utilized by multiple

departments and agencies. He noted that this resolution is a time sensitive

matter due to the flights being scheduled for March 2025.

After the vote on this resolution, County Board Member Bates requested that a

Finance 101 informational meeting be held during a Committee of the Whole.

This would be for new and old County Board members who are interested in

learning more on the County's financials. 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 Opioid Response Community Implementation Project

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, Clifford Surges, and Vern Tepe

AYE:

Approving County Board Personal Expense Voucher Reimbursement Request

Committee Member Lenert wondered if the County's ordinance could be

changed to allow legitimate small dollar amount personal expense vouchers

(PEVs) to be approved without the County Board's approval. ASA Frank stated

that this matter would be looked into.

Committee Member Sanchez requested that the County Board develop a

well-defined policy on PEVs. Discussion ensued. ASA Frank explained that

approvals of PEVs is a state statute.

KC Executive Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Jarett Sanchez

TO:

MOVER:

SECONDER:

Anita Lewis

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

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Approving County Board Personal Expense Voucher Reimbursement Request

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Leslie Juby

MOVER:

Anita Lewis

SECONDER:

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

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Approving County Board Personal Expense Voucher Reimbursement Request

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, Anita Lewis, Jarett

Sanchez, Clifford Surges, and Vern Tepe

AYE:

10.

Old Business

Committee Member Surges asked if budgeted items, such as PEVs, that are within

tolerance could be grouped together for a vote. ASA Frank stated that this would be

looked into. He questioned as to why a number of today's resolutions were included on

this agenda. Fin. Exec. Dir. Hopkinson provided an explanation. Frank provided further

explanation on the jurisdiction of committees. Much discussion ensued.

11.

12.

Reports Placed On File

RESULT:

MOVER:

APPROVED BY UNANIMOUS CONSENT

Jarett Sanchez

Committee Chairman's Comments

Chairman Berman stated the Finance Committee's sole responsibility is to present a

balanced budget. During this past year, the Committee had ideas on how to cut

expenses that were presented to the County departments/offices. However, adequate

support was not given by the departments/offices. Berman explained, fortunately, the

County had the resources to present a balanced FY2025 budget. However, for

FY2026, the County will not have reserves to fall back on. Starting next Finance

Committee meeting, Berman requested that each member come prepared with

plausible solutions on how to reduce expenses. He noted that the County must find

approximately $20M. He stated that this will be a challenge for the County, but all need

to help with this matter. He commended the Finance Committee members for their

work on the budget, and hopes to continue for FY2026.

13.

Executive Session (if needed)

None.