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, September 25, 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 Clifford Surges

Board Member Vern Tepe

PRESENT

Ex-Officio County Board Chair Corinne M. Pierog

Board Member Jarett Sanchez

REMOTE

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

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

Kietzman; ITD/BLD Exec. Dir. Fahnestock & staff Lasky*, Files, Peters; HRM Exec. Dir.

Lobrillo; KCHD Exec. Dir. Isaacson; Environ. & Water Res. Dir. Wollnik & staff

Henshaw, Ryan; State's Attorney staff Frank, Shepro, Hunt*; Dev. Dir. VanKerkhoff;

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

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 Sanchez

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

Approval of Minutes: August 12, 2024, August 19, 2024 & August 28, 2024

Chairman Berman stated the meeting minutes from August 19, 2024 and August 28,

2024 would be deferred until next month's Committee meeting. The minutes from

August 12, 2024 were approved by unanimous consent on a motion made by Tepe.

RESULT:

MOVER:

APPROVED BY UNANIMOUS CONSENT

Vern Tepe

Public Comment

(Committee Member Sanchez arrived remotely at 9:02 a.m.)

Kane County resident, Jenine Mehr, explained that she has been a financial advisor for

the past 40 years. In 2020, Madam Chairman Pierog was elected. She was the first

democratic Kane County Board Chair in the County's history. However, in 2020, the

annual budget for the County's General Fund was $65M. By 2024, the annual budget

has raised to $122M, which is an 87% increase. Mehr stated that the typical nationwide

County Board increase is approximately 2% to 6% per year. She explained that the

Contractual Services and Employee Benefits are two areas where the budget has

drastically increased. Mehr stated that this increase has nothing to do with

personalities, politics, and/or emotions, these are facts. This in hurting Kane County

residents and the County needs to be ran by a chairman and members that are held

accountable for utilizing the citizens' funds in a fiscally responsible manner.

Kane County resident, Julianna Spitilli, read a letter written by fellow concerned Kane

County resident, Jenine Mehr. The letter explained that Ms. Mehr has been a financial

planner and wealth advisor, who has been counseling individual and businesses for

more than 40 years. The letter voiced concerns regarding the 0.75% Special County

Retailers' Occupation Sales Tax and the Kane County's annual budget shortfall. Ms.

Mehr spoke on the 87% budget increase since 2020 and Madam Chairman Pierog took

office. She addressed the declining population in Kane County and how this does not

allot for the increase in expenses. She noted that the Kane County Board has mainly

democratic members.

Michelle Bettag, St. Charles, spoke on Kane County's FY2025 Budget and excessive

spending. She stated that Kane County residents are struggling, while the Kane County

Board continues to increase spending. She spoke on the County's potential purchase

of a new Health Department and the construction of a new Government Center

building. Bettag recalled the meeting on increasing the compensation of elected

officials. She spoke on the hypocritical notion of having the County Board saying that

the County will run out of money by 2028, while raising the salaries of all elected

officials. Bettag spoke on the financial struggles that individuals and small businesses

are facing. She stated that people will soon not be able to afford to live in Kane County.

She asked those on the Board with financial backgrounds to take the initiative to meet

with the County's financial experts to figure out a solution. (Committee Member Surges

in-person 9:11 a.m.)

Brad Raschke, Geneva, spoke on the issue of citizens versus the government, which

has increasingly become detached from the people it is meant to serve. He stated that

government cannot and will not stand unchallenged. He provided historic examples of

citizens holding government accountable. The people of Kane County are being asked

to shoulder the growing burden, while the officials, who were elected to represent them,

grow more distant and unaccountable. Raschke stated that this is not a matter of

balancing budgets, it is about principle. A government that continues to expand it's

power and it's spending at the expense of the people is a government that will face

resistance. Raschke spoke on the Ratchet Effect. He stated that when a government

ceases to serve the people, they will push back. Citizens will not stand idle while they

are treated as nothing more than an endless source of revenue. If the Kane County

Board continues to go down this path, Raschke ensures that the people will respond.

The answer to the budget shortfall is not more taxes and spending, but for the Board to

remember who they serve. The citizens of Kane County are demanding accountability,

fiscal responsibility, and the cycle of taxation and waste.

Anthony Catella, St. Charles, voiced his concerns on the current state of Kane County's

annual budget. He spoke on the increase in spending over the past four years. He

stated that Kane County's population has decreased from 520K in 2012 to 515K in

2023. This does not constitute the increase in spending. Catella explained that in 2020,

$41M was allocated for salaries and wages. Today, that figure has increased to

$78.2M. Additionally, contractual personnel costs have increased from $10M to $175M,

which further adds to the financial strain on tax payers. Catella stated that it is time that

leadership take a look at this runaway spending. Recently, he spoke with a man about

the high taxes being paid and the lack of services he is provided.

Frank Esposito, St. Charles, spoke on the monthly financial reports. On page 117 of

the agenda packet, there is an analysis of the 2022 to 2024 County expenses. He

hopes that as the County Board votes on an item, that they are continually looking at

the bigger financial picture. The bigger picture starts at the beginning when the annual

budget is drafted. Big financial decisions need to be made then. Esposito voiced his

opposition to the implementation of the Special County Retailers' Occupation Sales

Tax. He stated that he will be able to buy the same product in DuPage and pay less

than Kane County. He found it strange that this referendum will be included on the April

Consolidated Election when there will be less voters. Lastly, Esposito referenced page

431 of the agenda packet. The County is set to pay $210,243.73 to Comcast at the end

of the fourth quarter. Esposito believes that the County should be getting paid this

amount by Comcast, in order for them to service the community. There needs to be

somebody that watches these things.

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 graph. He stated that

interest-income performance is exceeding the expected $1.8M. He reported that

interest rates are beginning to trend down. Lauzen shared the Kane County

Portfolio Analysis Summary. He explained that 63% of Kane County's portfolio

has a two to three year duration with interest rates of four to five percent. One of

the County's investment managers, Vectors, has been collecting interest on

mortgage backed security with 42% invested with a 5.24% interest rate for a

duration of 3.25 years. Additionally, PFM Asset Management (PFMAM) has

been collecting the mortgage backed security with 35% invested with a 4.96%

interest rate for a duration of 3.07 years. Lauzen noted that these numbers

illustrates where the County is financially with interest income. He stated that the

County did stretch the maturities of the investments over a longer period,

knowing interest rates would be decreasing. Finally, Lauzen shared that Vector's

Finance Advisor, Neil Powers, was the recipient of the Top Guns Award for 2024

Quarter Two. Mr. Powers is one of the financial advisors that assists Kane

County's interest portfolio. Lauzen addressed questions and comments from the

Committee. Discussion ensued. (Madam Chairman Pierog arrived in-person at

9:27 a.m.)

Auditor's Report (P. Wegman)

Monthly Report

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

within her report is the Quarterly Financial Report and the mid-year Procurement

Card Report. She stated that these reports were emailed to all Board Members

on Monday.

Approving August 2024 Claims Paid

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Vern Tepe

MOVER:

Leslie Juby

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

shared the General Fund's General Account Analysis. She explained that this

report is a subset of the County's General Fund. As of September 25, 2024, the

County is utilizing approximately $6M in fund balance. This is primarily due to

the second installment of property tax revenue being submitted. This amount will

carry the County for the next 2.5 months, or until the end of the fiscal year. The

County is running close to it's allotted budget. At the end of the fiscal year, the

County will need to use approximately $10M to $14M in excess funds to balance

the account. Hopkinson explained that in the primary COVID years, FY2020,

FY2021, and FY2022, regular salaries were being paid out of the American

Rescue Plan Act and CARES Act funding. Normally, salaries would have been

paid out of the General Fund. In 2020, the County paid out $18.4M in salaries. If

this amount would have been covered by the County's General Fund, in 2020,

the total expense amount would have been $83.8M. In 2021, expenses would

have been $85.5M. In 2022, expenses would have been $95M. The County's

total expenses in 2020 for the General Fund was $270M. Hopkinson addressed

questions and comments from the Committee. Discussion ensued.

Hopkinson shared information on the Personal Property Replacement Tax

(PPRT). She explained that the Illinois Department of Revenue provided an

update on the PPRT forecast. On August 26, 2024, they stated that Kane

County would be receiving another decreased amount. For July 1, 2024 through

July 1, 2025, the County will receive approximately 2.3%. Additionally, the

Finance Department has completed the County's single audit, which was the

audit of the County's federal funds. Hopkinson noted that Baker Tilley was the

external firm that completed the audit and found no findings. She explained that

the Finance Department and Information Technologies Department had a

kick-off meeting to begin installing the financial forecasting software. She noted

that this will be a several month process, but is looking forward to better forecast

the County's finances. Hopkinson stated that the FY2025 Budget has been on

display on the County's Finance webpage and a hard copy is located at the

Kane County Clerk's Office. She noted that there has been one department that

has requested to make changes to reduce their budget. Lastly, she explained

that all of the property tax levies would be placed on the October Finance

Committee meeting agenda for discussion and a vote. She noted that the Mill

Creek Special Service Area just informed the County on the potential increase in

their tax levy, which will need a referendum. Hopkinson addressed questions

and comments from the Committee. Much discussion ensued.

New Business

Authorizing Fiscal Year 2025 Non-Union Cost-of-Living Wage Increase

Committee Member Juby shared her concerns on the 2.5% cost-of-living

increase. She explained that the Social Security Office has forecasted a 3.2%

cost-of-living increase for 2025. She noted that if the County is only going to

offer non-union employees a 2.5% increase, than it should be called something

other than a cost-of-living increase, or amend this ordinance to offer the

projected 3.2%. Committee Member Lenert stated that this ordinance needs to

be amended to read, "Authorizing Fiscal Year 2025 Non-Union Cost-of-Living

Wage Partial Increase".

Lenert motioned to amend this ordinance to state the mentioned title, Surges

seconded. Discussion ensued. Motion to amend was rescinded.

Juby motioned to amend this ordinance to offer a cost-of-living increase of 3.2%,

Lenert seconded. Much discussion ensued. Motion passed by a 4-3 vote.

Further discussion ensued.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Vern Tepe

MOVER:

Anita Lewis

SECONDER:

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

Sanchez, and Clifford Surges

AYE:

Vern Tepe

NAY:

Authorizing a Merit Increase Pool for Kane County Departments

Committee Member Surges thanked his colleagues for sending this resolution

back to Committee for further discussion and information. He explained that

HRM Exec. Dir. Lobrillo and himself identified that this merit component of the

budget is a part of the County's compensation policy. However, each year, the

County has failed to identify a specific funding pool for it. As of today, the County

has allotted a $270K pool to help cover merit increases, which will have a null

effect on the County's budget but an enormous effect of the performance of

staff. (Committee Member Sanchez arrived in-person at 10:00 a.m.)

Committee Member Juby asked if this increase is a one-time bonus or will it be

an increase to their salaries, which will effect the County's budget. Lobrillo

explained that this increase will be calculated as a pool that will be distributed at

the department head's discretion based on merit. She noted that all the details

on how this increase works is described in the County's new compensation

policy. The policy does provide for a merit raise for those employees that are

high performing. Lobrillo explained how the pool amount is calculated. She

explained that an evaluation on specific employees is conducted before a merit

increase is awarded. Lobrillo addressed questions and comments from the

Committee. Much discussion ensued.

KC Executive Committee

RESULT:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Clifford Surges

TO:

MOVER:

SECONDER:

Leslie Juby

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

Sanchez, and Clifford Surges

AYE:

Vern Tepe

NAY:

Approving a Supplemental Budget Adjustment and Authorizing Execution Of

Collective Bargaining Agreement - Coroner’s Bargaining Unit

At the request of the State's Attorney's Office and the Coroner's Office, this item

was tabled. It will be deferred to next month's meeting.

RESULT:

TABLED

Authorizing the County to Contract with Humana Inc. to Provide the 2025

Healthcare Continuation Coverage for Medicare Eligible Retired and Disabled

Employees and Surviving Spouses

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Clifford Surges

MOVER:

Vern Tepe

SECONDER:

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

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Approving the Kane County Per Diem Meal Rates for Calendar Year 2025

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Clifford Surges

MOVER:

Anita Lewis

SECONDER:

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

Sanchez, Clifford Surges, and Vern Tepe

AYE:

Authorizing the Creation of a Position of Fatality Review Manager for the Kane

County Health Department

Committee Member Lenert asked if this position was fully funded by grants and

not by the County's General Fund. Fin. Exec. Dir. ensured that no funding from

the General Fund would be utilized.

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:

Authorizing IMRF Benefit Protection Leave

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:

Authorizing Houston-Galveston Area Council (H-Gac) Purchasing Cooperative

Agreement

Committee Member Juby asked if there were any purchasing cooperatives

located in Illinois or the Midwest. She voiced her discernment on utilizing

another purchasing cooperative when the County already has some with other

companies. Fin. Exec. Dir. Hopkinson explained that in terms of the location,

that is where the cooperatives are put together. She noted that this cooperative

was recommended by the Kane County's Purchasing Department because of

the options that are offered. Hopkinson addressed questions and comments

from the Committee. Discussion ensued.

KC Executive Committee

RESULT:

TO:

MOVED FORWARD BY ROLL CALL VOTE

KC Executive Committee

Bill Lenert

MOVER:

Jarett Sanchez

SECONDER:

Dale Berman, Bill Lenert, Anita Lewis, Jarett Sanchez, Clifford

Surges, and Vern Tepe

AYE:

Leslie Juby

NAY:

Approving Transfer and Payment in Accordance to the Agreed Order for Case

No. 13 L 134

Committee Member Juby voiced her discernment on why the County is paying

for this. She spoke on her confusion on how this amount increased from $50K to

$210K. Committee Member Surges explained that this was a part of a

settlement agreement from several years ago. ASA Frank stated that this

amount was part of the negotiated settlement that called for a balloon payment.

He noted that this is the final payment and the end of the agreement.

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:

Authorizing Subaward Agreement with the Metropolitan Mayors Caucus to

Perform Recycling Education and Outreach in Kane County

Committee Member Tepe asked for an explanation on this resolution. Environ.

and Water Res. staff Ryan explained that this is a memorandum of

understanding (MOU) for the County to accept money from the Mayors' Caucus

to do targeted education and outreach on recycling as part of a regional effort to

improve understanding. The amount to be received is $83,333.33.

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:

Authorization to Enter into Annual Kane County Health Department Grant

Agreements

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 Execution of a Grant Agreement with Lighthouse Recovery, Inc. to

Expand Medication Assisted Recovery Services and Appropriation of Funds

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:

Authorizing Transfer of Transportation Capital Fund #540 into Transportation

Sales Tax Fund #305

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:

Authorizing a Contract with Tech Applications & Consulting, LLC for the 3DEP

LIDAR Project (BID# 24-053-KK)

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:

10.

Old Business

Madam Chairman Pierog inquired on the status of putting forward a Request for

Proposal (RFP) for strategic planning. Fin. Exec. Dir. Hopkinson stated that a RFP has

been drafted. Currently, the Purchasing Department is reviewing it. Hopkinson noted

that this should be completed and posted by the end of the week.

Pierog asked for a status update on the external equity study. The Committee informed

her that the resolution did not pass through committee. Discussion ensued.