Finance Legal Administrative General Government

I have reviewed the minutes, and they accurately represent the actions taken by the Finance, Legal, Administrative, and General Government Committee. Lisa Petersen Lisa Petersen Director of Finance Finance Legal Administrative General Government Minutes of October 20, 2025 CALL TO ORDER The Finance Legal Administrative General Government meeting was called to order at 7:00 p.m. by Trustee Bieschke. ROLL CALL Members Present: Brian Bieschke Jamie Clar Jack Sullivan Member(s) Absent: none Staff Present: Paula Hewson, Assistant Village Manager Lisa Petersen, Finance Director Alex Thorpe, Assistant Finance Director Matt Frank, Economic Development Director Kassondra Schref, Director of Communications and Outreach Franceska Fabyan, Accounting Manager Brad Porter, Lauterbach and Amen APPROVAL OF MINUTES: A motion was made by Trustee Clar, seconded by Trustee Sullivan, to approve the minutes of September 15, 2025. Voice vote 3-0. All Ayes. MOTION CARRIED NEW BUSINESS: 1. Finance Department Monthly Report – September 2025 Ms. Petersen stated that the General Fund is looking very healthy because taxes are coming in well, as they have been for the last two years. On the expense side, salaries are below budget, but that will start to catch up as we progress through the fiscal year. There are three payrolls in October and due to the delay in property taxes from Cook County, pension contribution expense 1|Page Finance Legal Administrative General Government October 20, 2025 - Meeting Minutes hasn’t been recognized. We are currently showing a $14 million dollar surplus in the General Fund, year-to-date. Trustee Bieschke asked if there was any new information about Tesla? Ms. Petersen answered that while Sales Tax is strong, IDOR has not released any new information on Tesla. Ms. Petersen explained that the gaming report is a repeat of last month as the State has not yet issued a new report. The CPI publication dated was changed to October 24, 2025, and the PPI is not updated because it was published after the report was complete. However, Ms. Petersen stated that it is flat to last month. The water and sewer charts had a revenue element missing from the data reported in the chart. The monthly customer service charge did not pull into the data that we used to create these charts but that will be fixed for next month. A motion was made by Trustee Sullivan, seconded by Trustee Clar, to recommend the Village Board accept the Monthly Report for September 2025. Voice Vote 3-0. All Ayes MOTION CARRIED 2. Recommendation to Accept the Annual Comprehensive Financial Report for the Year Ended April 30, 2025 Ms. Petersen stated that Brad Porter from Lauterbach and Amen will provide the required communication by the independent audit firm to the Finance Committee. Ms. Petersen, recognized Franceska Fabyan, Accounting Manager, and her team for a job well done on another audit season, and thanked Ms. Fabyan for her many hours of work and dedication for the past 6 months, which is what it takes to draft the annual financial statements. Mr. Porter began by saying that he will be giving a brief recap on the fiscal year 2025 audit. This is the first year on our engagement letter and from our perspective, we have nothing but glowing things to say about our interactions with staff. Mr. Porter explained that local governments are required by state law to have their annual financial statements audited by a qualified certified public accountant. The Village retained the services of Lauterbach & Amen, LLP to perform the financial statement audit for the fiscal year ended April 30, 2025. The auditors’ opinion on the financial statements, found on pages 12 thru 14, reports that the Annual Report is prepared in accordance with Generally Accepted Accounting Principles and presents fairly the financial position of the Village on April 30, 2025, and the results of its operations for the year then ended. Additionally, required communications such as the Management Letter and the Statement of Auditing Standards Report are included. Financial results for the General Fund were strong despite a net decrease in Fund Balance of $1.2 million, which was a tactical transfer of excess reserves to various funds, which is per policy, so there are no concerns. Further, Mr. Porter said there is an overall review of the Village's financial condition and results of operation in a section titled "Management's Discussion and Analysis" (MD&A), which can be found on page 16 of the Annual Report. Finally, Mr. Porter referenced the Management Letter and explained that staff provided excellent explanations of the two comments, which referenced five funds that were over budget (three of them by less than $1,000) and two funds that carry 2|Page Finance Legal Administrative General Government October 20, 2025 - Meeting Minutes negative fund balances, one being the Experior TIF, which hasn’t received property tax increment yet, but has incurred expenses. A motion was made by Trustee Clar, seconded by Trustee Sullivan, to recommend the Village Accept the Annual Comprehensive Financial Report for the Year Ended April 30, 2025. Voice Vote 3-0. All Ayes MOTION CARRIED 3. Recommendation to Establish the Levy Amount at $19,479,582, Set the Tentative Levy on November 11, 2025, and Adopt the Tax Levy Ordinance on December 9, 2025 (No increase from 2024) Ms. Petersen explained that the 2025 property tax levy is proposed to remain flat at $19,479,582. Nearly 90% of the levy is now required for pension contributions, leaving only about $2.0 million to support Police and Fire operations. This represents a $883,087 (5.3%) increase in pension contributions from last year. The recommended allocation is $9,174,445 for the Police Pension fund, $8,293,853 for the Fire Pension fund, and $2,011,284 to help offset costs of public safety operations. For the average Schaumburg home valued at $400,000, the Village’s portion of the property tax bill is estimated to decrease from $516.37 to $437.54. This estimate is based on preliminary equalized assessed valuation (EAV) data available. Since the Village levies a flat dollar amount rather than a tax rate, the actual rate fluctuates depending on changes in the overall tax base. If EAV increases, the levy is spread across more value, which lowers the effective rate and helps keep the Village’s share of the homeowner’s tax bill relatively stable. At the current expense increase trend, the property tax levy is projected to be fully committed to pension costs by 2028, leaving no portion available to support Police and Fire operating budgets. Ms. Petersen stated that there are potential revisions to Tier 2 pensions currently being debated in Springfield that could substantially increase Annual Required Contributions (ARCs). If enacted, these changes would raise the Village’s pension obligations further, without any offsetting financial assistance from the State, placing the full burden on local revenues. A motion was made by Trustee Sullivan, seconded by Trustee Clar, to recommend the Village establish the Levy Amount at $19,479,582, Set the Tentative Levy on November 11, 2025, and Adopt the Tax Levy Ordinance on December 9, 2025 (No increase from 2024). Voice vote 3-0. All Ayes. MOTION CARRIED 4. Recommendation to Establish the Levy Amount for the Special Service Area 16 (Woodfield Business Center Open Space) at $135,695, Set the Tentative Levy on November 11, 2025, and Adopt the Tax Levy Ordinance on December 9, 2025 Mr. Thorpe stated that the Village Board approved the creation of Special Service Area (SSA) 16 on April 22, 2025, for the Remington Basswood – Woodfield Business Center Subdivision. The SSA establishes a dedicated funding source for the restoration and long-term maintenance of the subdivision’s detention pond and park located at Remington Road and Basswood Drive. The subdivision’s original owners’ association, formed in 1979, dissolved in 2012, leaving the property without oversight and the Village to assume maintenance responsibilities. After unsuccessful efforts to re-establish the association and a denied 2018 court petition for a 3|Page Finance Legal Administrative General Government October 20, 2025 - Meeting Minutes receiver, the Village acquired the property in 2024 through Cook County’s “No Cash Bid” program. The Board’s establishment of SSA 16 ensures that property owners within the subdivision share the costs of maintaining and improving these common areas going forward. Further, Mr. Thorpe said the SSA 16 ordinance authorizes an annual tax of up to $0.83 per $100 of EAV on taxable property within the district. The first-year levy of $135,695 covers one-time capital improvements such as new tree plantings, installation of benches and garbage cans, and rehabilitation of the 2,700-foot walking path, and to recoup funds already expended. Ongoing work such as landscape and turf maintenance, trash collection, and pond and tree care to preserve the subdivision’s stormwater and park infrastructure will be paid for with future levies which are expected to stabilize at lower annual maintenance levels. Mr. Thorpe said that because SSA levies are separate from the Village’s general property tax levy, they are not subject to the Truth-in-Taxation Act. A motion was made by Trustee Clar, seconded by Trustee Sullivan, to recommend the Village establish the Levy Amount for the Special Service Area 16 (Woodfield Business Center Open Space) at $135,695, Set the Tentative Levy on November 11, 2025, and Adopt the Tax Levy Ordinance on December 9, 2025. Voice vote 3-0. All Ayes. MOTION CARRIED 5. Recommendation to Approve the Annual Stipend List for Advisory Committee Members for Fiscal Year 2024-25 Ms. Petersen stated that each year, the Village issues stipends to members of its various Committees in recognition of their service. Committee participants receive an annual stipend plus $25 for each meeting attended. To qualify for the annual stipend, members must attend at least 50% of the regularly scheduled meetings during the reporting year. The attached list outlines the annual stipend amounts for each Committee. A motion was made by Trustee Sullivan, seconded by Trustee Clar to approve the Annual Stipend List for Advisory Committee Members for Fiscal Year 2024-25. Voice vote 3-0. All Ayes. MOTION CARRIED 6. Recommendation to Accept the Proposal with Red Caffeine for Advertising, Media Planning, and Media Buying Services Contract Mr. Frank stated that the village sought a qualified, full-service agency partner to build a comprehensive advertising campaign that enhances Schaumburg's brand, strategically plans and executes media, and integrates analytics to measure effectiveness. Mr. Frank said 12 firms located in the Chicagoland area submitted proposals. Preference was given to local agencies that not only understood the regional media landscape but also demonstrated extensive knowledge of Schaumburg, paired with high-quality agency capabilities. Red Caffeine's familiarity with Schaumburg will produce a Grow to Market Plan, Media Placement, and tools that village staff could utilize to expand the campaign. Ms. Schref explained that Red Caffeine's plan emphasizes robust measurement, post-buy reporting, and adaptive strategy to maximize our return on investment. The project budget is 4|Page Finance Legal Administrative General Government October 20, 2025 - Meeting Minutes $260,000, shared between the Communications & Outreach Department and the Economic Development Department and demonstrates a cost structure that allocates the majority of funds to media placement and campaign execution, minimizing overhead. Village staff will ensure that this is reflected in the final contract document. Trustee Bieschke stated that he liked the concept of consolidating efforts and asked how will messages be sent? Ms. Schref answered that they will use multiple channels that are yet to be determined. Ms. Hewson stated that professionals will help us get what we want. A motion was made by Trustee Sullivan, seconded by Trustee Clar to Accept the Proposal with Red Caffeine for Advertising, Media Planning, and Media Buying Services Contract. Voice Vote 3-0. All Ayes. MOTION CARRIED UNFINISHED BUSINESS: None DEFERRALS: None COMMENTS FROM THE AUDIENCE: None ADJOURNMENT: A motion was made by Trustee Clar, seconded by Trustee Sullivan to adjourn the Finance Legal Administrative General Government at 7:40 p.m. Voice vote 3-0. All Ayes. MOTION CARRIED 5|Page