Kane County Finance and Budget Committee met May 29.
Here is the minutes provided by the committee:
1. Call to Order
Chairman Hoscheit called the meeting to order at 9:02 a.m.
| Attendee Name | Title | Status | Arrived |
| John Hoscheit | Chairman | Present | |
| Bill Lenert | Vice Chair | Present | |
| Deborah Allan | Board Member | Present | |
| Mo Iqbal | Board Member | Present | |
| Jarett Sanchez | Board Member | Present | |
| Clifford Surges | Board Member | Present | |
| Angela C Thomas | Board Member | Late | 9:05 AM |
2. Minutes Approval: April 24, 2019
RESULT: APPROVED WITH VOICE VOTE [UNANIMOUS]
MOVER: Mo Iqbal, Board Member
SECONDER: Deborah Allan, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges
ABSENT: Angela C Thomas
3. Public Comment
None
4. Treasurer's Report (D. Rickert)
Treasurer D. Rickert provided a brief update noting the April interest rates were 2.27%. The rates have been fluctuating due to the issues with the economy and the trade war with China. Staff is optimistic the rates will maintain at a steady pace going forward. Questions were answered from the Committee. (Thomas arrived @ 9:05 a.m.)
5. Finance Director's Report (J. Onzick)
A. FY18Audit-ManagementLetter
Referencing the monthly financial reports included in the agenda packet, Finance Dir. Onzick noted the significantly higher revenue and expenditure variances in some departments are a result of internal transfers and encumbrances for expenses that will occur later in the year.
The external auditors Jason Coyle of Baker Tilly Virchow Krause, LLP at the Committee of the Whole meeting yesterday, formally presented the Comprehensive Annual Financial Report. Dir. Onzick noted there are no audit findings regarding the financial statement audit. Progress has been made for the collection of bank statements and reconciliations from most County offices and departments that have off-book accounts. One outstanding delay was the Circuit Clerk's office; this was due to the implementation of the new case management system. Staff has continued to work towards 100% compliance. Onzick thanked the various staff members that volunteered their time to help meet the audit deadlines.
6. New Business
A. Resolution: Amending 2019 Fiscal Year Budget - Rollover of Capital Funds for Information Technologies
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Bill Lenert, Vice Chair
SECONDER: Jarett Sanchez, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
B. Resolution: Authorizing FY19 Budget Adjustment to Correct Bond Premium Allocation
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Mo Iqbal, Board Member
SECONDER: Deborah Allan, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
C. Resolution: Authorizing Fulfillment of an HR Generalist Position and Related FY19 Budget Adjustment
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Clifford Surges, Board Member
SECONDER: Deborah Allan, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
D. Resolution: Authorizing Contract for Elevator Modernization Project: Aurora Health Center & Government Center Campus Building "B"
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Deborah Allan, Board Member
SECONDER: Bill Lenert, Vice Chair
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
E. Resolution: Authorizing a Contract Extension for Kane County FY2019 Generator Preventative Maintenance Services
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Jarett Sanchez, Board Member
SECONDER: Mo Iqbal, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
F. Resolution: Authorizing Contracts with AT&T for Telecommunication Services
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Deborah Allan, Board Member
SECONDER: Mo Iqbal, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
G. Resolution: Metro West Animal Control Renewal
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Jarett Sanchez, Board Member
SECONDER: Mo Iqbal, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
H. Resolution: Authorizing an Extension for Mill Creek SSA Landscaping Maintenance Services "All-Inclusive" Contract
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Bill Lenert, Vice Chair
SECONDER: Deborah Allan, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
I. Resolution: Authorizing Renewal of a Support Services Contract for the Homeless Management Information System
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Jarett Sanchez, Board Member
SECONDER: Mo Iqbal, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
J. Resolution: Authorizing Agreements for Workforce Innovation and Opportunity Act and Trade Adjustment Act Programs for Program Year 2019
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Mo Iqbal, Board Member
SECONDER: Jarett Sanchez, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
K. Resolution: Authorization for Extension of Route 38 & Peck Road Farm Land Lease
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Deborah Allan, Board Member
SECONDER: Jarett Sanchez, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
L. Resolution: Authorizing the Execution of an Intergovernmental Agreement Between the Illinois Department of Healthcare and Family Services and the Kane County State's Attorney's Office
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Mo Iqbal, Board Member
SECONDER: Jarett Sanchez, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
M. Resolution: Authorizing Renewal and Amendment No. 5 to the Intergovernmental Agreement Between the County of Kane, the Kane County Child Advocacy Center and the Board of Trustees of the University of Illinois
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Bill Lenert, Vice Chair
SECONDER: Deborah Allan, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
N. Resolution: Authorizing the Purchase of Naloxone Nasal Spray
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Bill Lenert, Vice Chair
SECONDER: Clifford Surges, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
O. Resolution: Authorizing the Purchase of Children's Health Insurance Program Vaccines
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Mo Iqbal, Board Member
SECONDER: Clifford Surges, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
P. Resolution: Authorizing Creation of New Funds to Coincide With Approved Circuit Clerk Fee Schedule
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Mo Iqbal, Board Member
SECONDER: Jarett Sanchez, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
Q. Resolution: Authorizing Donation of Surplus Vehicle to Special Olympics
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Bill Lenert, Vice Chair
SECONDER: Clifford Surges, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
R. Resolution: Authorizing Exception to the County Financial Policies Regarding Personnel Hiring and Replacement Community Health Specialist II: Environmental Health Practitioner
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Deborah Allan, Board Member
SECONDER: Mo Iqbal, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
S. Resolution: Authorizing the Replacement Hiring of a Part Time Kennel Assistant
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Deborah Allan, Board Member
SECONDER: Mo Iqbal, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
T. Resolution: Presentation of April 2019 Claims Paid
RESULT: MOVED FORWARD WITH VOICE VOTE [UNANIMOUS] Next: 6/5/2019 9:00 AM
TO: Executive Committee
MOVER: Jarett Sanchez, Board Member
SECONDER: Deborah Allan, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
7. Old Business
Dir. Onzick requested consensus from the Committee to approve the budget presentations schedule for the COW meetings for June, July and August 2019. There was consensus from the Committee to approve the schedule.
8. Auditor's Report (T. Hunt)
The monthly reports were included in the agenda packet. Auditor Hunt discussed the Countywide Funds including the Governmental and Proprietary Funds as of February 28, 2019. The Countywide Funds balance, end of quarter was just over $255M. Referencing a pie chart, Hunt discussed the itemized components of the Countywide Funds. The 18 Agency Funds reclassified into the Special Revenue Fund has allowed transparency in activity and is now part of the reporting/budgeting process.
A breakdown of general obligation bonds and debt certificates from 2001 to 2013 were itemized with a 10-year history of outstanding indebtedness at year-end. In December 2018, the County issued just over $27M of toll bridge revenue bonds. Series 2018 is scheduled to be fully retired in December 2048.
9. Reports Placed On File
A change in Agenda order as follows Reports were placed on file prior to the IMRF presentation.
RESULT: PLACE WRITTEN REPORTS ON FILE [UNANIMOUS]
MOVER: Bill Lenert, Vice Chair
SECONDER: Deborah Allan, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
10. Presentation
A. IMRF B. Collins
Referencing a PowerPoint presentation not included in the agenda packet, Illinois Municipal Retirement Fund (IMRF) Exec. Dir. Collins provided a brief history of the company and the assumed rate of return decision. In the December 2018 Board of Trustees IMRF meeting, they voted to lower the assumed rate of return from 7.5% to 7.25%.
Collins noted the decision was made because of the changes in the economy throughout the nation during the last few years. He provided a bar graph demonstrating the percentage performances of all the major funds throughout the United States including IMRF over the past 30 years. The rebound of the recession over the past 10 years has demonstrated a slow decline in return. Collins indicated the fluctuation of the market has caused a decline, so a more conservative approach was taken by lowering the rate. It was determined that the median expectation is 7.25% across the United States. Collins noted that being too optimistic will result in chronic under funding, however IMRF has done very well in this period, the company follows the same market trends. If the rate is left above the market rates, more risk is taken. Lastly, Collins discussed the 2020 Phase-In program option provided for Kane County. Specific questions from the Board members and discussion followed.
Chair Hoscheit provided background information regarding Kane County specifically to IMRF Dir. Collins. He emphasized that Illinois is known as a pension-funding crisis State. Kane County has always been a very conservative County. Historically the County has allocated additional funds when available to IMRF to fill the gap and reach 100%. Kane County is currently at a 90% funding, one of the highest in the State. The challenge of having to include this additional $1.6M will affect the budget significantly.
Collins responded that IMRF is meeting the industry average according to circumstances and benchmarks across the United States. This fluctuation and liability was taken in account.
Chair Hoscheit asked, if the last rate change was roughly 25 years ago and the County has been at a steady performance, is there an option to increase the rate over time and what kind of time frame would be reasonable. Collins responded that a 10-year rate of return time frame is sustainable. Hoscheit stated that over 25 years IMRF has not needed to make an adjustment of this caliber. The market always fluctuates and to change over a one year of study after the 25 years of historic performance, the economic impact of paying an additional $1.6M per year is significant.
Co. Bd. member Iqbal asked questions regarding the data from the IMRF website. He noted the payout has been generous, but the raises and increases have been more than average, over the past 30 years. Collins responded that the increases are in the pension code made at the legislator level in Springfield, IL.
Hoscheit stated that over 25 years Kane County has had a historical performance, and now that there has been a change in administration in IMRF, the county is being required to take a more conservative approach that is not necessary.
Chairman Lauzen stated we perform at the best, and now we have to pay $1.6M more. The increase this year equates to a 21% increase to this obligation. Lauzen stated that this is a property tax issue. He noted that DuPage County had reached 120% at one point and still had to pay that funding line. Lauzen asked for an action item to be placed in the May Agenda for the Board of Trustees to vote for, postpone and or reconsider. The action was not put on the agenda. Collins responded that anyone is welcome to attend the meetings and speak.
11. Executive Session (If Needed)
None
12. Adjournment
RESULT: ADJOURNED BY VOICE VOTE [UNANIMOUS]
MOVER: Jarett Sanchez, Board Member
SECONDER: Mo Iqbal, Board Member
AYES: John Hoscheit, Bill Lenert, Deborah Allan, Mo Iqbal, Jarett Sanchez, Clifford Surges, Angela C Thomas
This meeting adjourned at 11:08 a.m.
https://www.countyofkane.org/MeetingMinutes/5082/19-05-29.pdf
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