This Meeting Is Bei1tg Held Via Telephonic Attendance Immediately
Total Page:16
File Type:pdf, Size:1020Kb
This meeting is bei1tg held via telephonic attendance AGENDA FINANCE COMMITTEE Village of Hoffman Estates June 22, 2020 Immediately following Public Health & Safety Members: Gary Pilafasj Chairperson Karen Mills, Trustee Anna Newell, Vice Chairperson Gary Stanton, Trustee Michael Gaeta, Trustee Karen Arnet, Trustee William McLeod, Mayor I. Roll Call II. Approval of Minutes - June 1, 2020 NEW BUSINESS 1. Presentation of the Comprehensive Annual Financial Report for the year ended December 31, 2019. 2. Presentation of the Economic Development Area Special Tax Allocation Fund Annual Financial Report for the year ended December 31, 2019. 3. Request approval of an Ordinance and Naming Rights Agreement with NOW Health Group, Inc. renaming the Sears Centre Arena to the NOW Arena, in an amount of $11.25 Million over a fifteen year term. 4. Request approval of a Termination Agreement and Mutual Release with Transform SR LLC terminating the existing Naming Rights Agreement. 5. Request approval of The Third Amended and Restated Commercial Rights Marketing Agreement with Spectra Partnerships to service the Naming Rights Agreement for NOW Health Group, Inc. REPORTS (INFORMATION ONLY} 1. Finance Department Monthly Report. 2. Information System Department Monthly Report. 3. Sears Centre Monthly Report. III. President's Report IV. Other V. Items in Review VI. Adjournment Further detalls and i11/om1atlo11 can be found in the agenda packet alJached hereto and incorporated herein a11d can also be viewed online at www.hoffnumestates.org and/or in person in the V"dlage Clerk's office. The Village of Hoffman Estates complies with the Americans with Disabilities Act (ADA). For accessibility assistance, call the ADA Coordinator at 847/882-9100. Village of Hoffman Estates DRAFT FINANCE COMMITTEE MEETING MINUTES June 1, 2020 I. Roll call Members in Attendance: Trustee Gary Pilafas, Chairman Trustee Anna Newell, Vice Chairperson Trustee Michael Gaeta Trustee Gary Stanton Trustee Karen Mills Trustee Karen Arnet Mayor William McLeod Management Team Members James Norris, Village Manager in Attendance: Dan O'Malley, Deputy Village Manager Patti Cross, Asst. Corporation Counsel Joe Nebel, Director of Public Works Rachel Musiala, Finance Director Richard Signorella, CATV Coordinator Bev Romanoff, Village Clerk Pat Fortunato, Fire Chief Peter Gugliotta, Director of Dev. Services Jennifer Horn, Dir. Of Planning and Trans. The Finance Committee meeting was called to order at 7:00 p.m. II. Approval of Minutes - April 27, 2020 May 11, 2020 (Special) Motion by Trustee Gaeta, seconded by Trustee Stanton to approve the Finance Meeting minutes for April 27, 2020. Voice vote taken. All ayes. Motion carried. Motion by Trustee Gaeta, seconded by Trustee Stanton to approve the Special Finance Meeting minutes for May 11, 2020. Voice vote taken. All ayes. Motion carried. NEW BUSINESS 1. Request approval of an ordinance to amend the FY2019 Budget as a result of the completed financial audit and to close out the fiscal year. An item summary sheet from Rachel Musiala was presented to Committee. Motion by Trustee Gaeta, seconded by Trustee Stanton to amend the FY2019 Budget as a result of the completed financial audit and to close out the fiscal year. Voice vote taken. All ayes. Motion carried. Finance Committee -2- June 1, 2020 REPORTS (INFORMATION ONLY) 1. Finance Department Monthly Report The Finance Department Monthly Report was received and filed. 2. Information System Department Monthly Report The Information System Department Monthly Report was received and filed. 3. Sears Centre Monthly Report The Sears Centre Monthly Report was received and filed. III. President's Report IV. Other V. Items in Review VI. Adjournment Motion by Trustee Gaeta, seconded by Trustee Arnet, to adjourn the meeting at 7:02 p.m. Voice vote taken. All ayes. Motion carried. Minutes submitted by: Jennifer Djordjevic / Director of Operations Date & Outreach, Office of the Mayor & Board NBl COMMITTEE AGENDA ITEM VILLAGE OF HOFFMAN ESTATES SUBJECT: 2019 Comprehensive Annual Financial Report MEETING DATE: June 22, 2020 COMMITTEE: Finance FROM: Rachel Musiala, Director of Finance PURPOSE: To present the Comprehensive Annual Financial Report for the fiscal year ended December 31, 2019. A portion of the draft report is attached to this agenda item and a CD of the entire draft report is included as well. BACKGROUND: Each year the Village retains a CPA firm to perform an audit of the Village's annual financial statements. This year, the firm of BKD CPA's & Advisors performed the audit. The 2019 audit was the first year ofa five-year contract with BKD. DISCUSSION: BKD has given the 2019 Comprehensive Annual Financial Report (CAFR) their "unmodified opinion." This means that the financial statements are fairly presented and are prepared in accordance with generally accepted accounting principles. A detailed summary of the Village's financial condition can be found in the Management's Discussion and Analysis (MD&A), which is located within the attached CAFR, directly following the General Purpose External Financial Statements tab. In the case of the Village of Hoffman Estates, liabilities exceeded assets by $54,714,730 as of December 31, 2019 compared to liabilities exceeding assets of $50,528,560 as of December 31, 2018. The Village's combined net position decreased by $4,186,170. This is primarily due to a planned drawdown in net position for capital projects. The Village is required to report over $119 million of liabilities related to the Economic Development Area (EDA), with no corresponding asset. These liabilities, however, are only payable if and to the extent incremental EDA property taxes are received and will never be a true liability of the Village's operating funds. If we exclude EDA activity, the Village is reporting a positive net position of assets exceeding liabilities by $62,184,868 as of December 31, 2019. The statement ofnet position (pages 4 and 5 of the CAFR, which includes all EDA activity) presents information on all of the Village's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. Related specifically to the General Fund, which includes the Municipal Waste System Fund in the CAFR, the fund balance increased by $878,936 during the current fiscal year, which was a very positive result when compared to the planned drawdown of $1,192,300. At the end of FY2019, unassigned fund balance of the General Fund was $20,242,741, while total fund balance equaled $25,798,131. The Village's current fund balance policy states that the Village will strive to maintain an unassigned fund balance within the General Fund equal to 25 percent of the preceding year's annual operating budget. Unassigned fund balance as of December 31, 2019 represents 32.2 percent of the total budgeted General Fund expenditures. RECOMMENDATION: Request acknowledgement of receipt and filing of the Comprehensive Annual Financial Report for the year ended December 31, 2019. ArrACHMENT (DRAFT 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT- PORTION PRINTED AND ENTIRE DOCUMENT ON CD) DRAFT COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED DECEMBER 31, 2019 VILLAGE OF HOFFMAN ESTATES, ILLINOIS DRAFT Village of Hoffman Estates, Illinois Comprehensive Annual Financial Report Fiscal Year Ended December 31, 2019 Prepared by Finance Department Rachel Musiala Director of Finance DRAFT Village of Hoffman Estates December 31, 2019 Contents Introductory Section Principal Officials ................................................................................................................................ i Organization Chart ............................................................................................................................. ii Certificate of Achievement for Excellence in Financial Reporting ................................................... iii Letter ofTrans111ittal .......................................................................................................................... iv Financial Section Independent Auditor's Report ............................................................................................................ I Management's Discussion and Analysis ......................................................................... MD&A 1-14 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ......................................................................................................... 4 Statement of Activities ............................................................................................................. 6 Fund Financial Statements Governmental Funds Balance Sheet ........................................................................................................................ 8 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position ................................. ......... 9 Statement of Revenues, Expenditures and Changes in Fund Balances ............................... I0 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities............................................. ............................. 11 Proprietary Funds Statement ofNet Position