Finance Committee

Finance Committee Meeting Council Chambers October 27, 2011 8:00 a.m. Attendance Committee Members Present: Mayor Callero, Chairman Lo Verde, John Johann, Village Manager Van Geem and Finance Director Neukirch Committee Members Absent: None Non Committee Members Present: Trustee Palicki, Trustee Hanusiak, Michael Mc Hugh (Gallagher) and Cheryl Nolan (Gallagher) Meeting Opened Meeting opened at 8:08 a.m. Approval of Minutes The minutes from the September 21, 2011 Finance Committee meeting were approved. Motion made, all concurred. Accounts Payable Approval The motion was made and all concurred to approve the Accounts Payable registers for September 16, September 17, September 23, September 30 and October 7 of 2011. Insurance Renewal Presentation Michael Mc Hugh and Cheryl Nolan from Arthur J. Gallagher Risk Management Services, Inc presented the annual renewal for workers compensation and liability insurance coverage for the Village of Niles self insured insurance plan. This process started in August of 2011 when Village staff provided Gallagher with the requested information. Gallagher solicited quotes from the market at the end of August and received quotes in October. Gallagher reviewed the results of the process with the Committee and answered questions from the Committee and non Committee members in attendance. Overall, Gallagher was able to obtain quotes that increased the Village’s stop loss coverage yet reduced the overall cost of the program. Additional coverage options were discussed and Village Manger Van Geem will discuss these options with Mike Mc Hugh and make a recommendation to the Village Board at a later date, if necessary. The Board concurred with Gallagher’s recommendation that the Village should have an appraisal done on its buildings and assets. The last appraisal was done in 2005. The cost associated with this appraisal will be incorporated in to the FY 2013 budget. Storm Water Relief Financing The Finance Committee discussed possible financing options for the Village’s Options storm water relief program. Options for funding discussed included property tax, a flat sewer fee, impervious land fee, sales tax increase and a residential garbage fee. The Committee recommended raising the Home Rule Sales Tax from 1% to 1.25% and increasing the Property Tax Levy by 4.9%. Both options will be brought to the Village Board for final approval. The Board also discussed the option of raising the capital improvement portion of the plan from $10 million to $15 million. The Committee will need to review this option at a later date. In the Spring the Village could raise the Sales Tax ½ %, abate less of the debt service property tax levy or utilize a portion of the cost sharing allocation for capital projects in order to pay for the additional $5 million in debt service. These options will need to be discussed with Hey and Associates. Purchasing Manual The Ethics Board’s changes to the purchasing manual were reviewed. One change by the Ethics Committee was modified. The Ethics Committee had made a change that required the Village Manager and Attorney to approve all bid lists at the start of each year. Finance Director Neukirch explained that there are over 100 bid lists and the Village does not use many of them each year. Finance Director Neukirch recommended that the change be modified to require the bid lists be approved by the Village Manager and Attorney prior to going out for bid for the items when the respective lists are actually going to be used. Other Business Village Manager Van Geem had some comments concerning the collection of outstanding police fines, but the Committee decided to defer this discussion until the November meeting. Adjournment A motion to adjourn was made, seconded and all concurred. The meeting adjourned at 10:35 a.m. Next Meeting The next Finance Committee meeting is scheduled for Friday, November 4, 2011 in the Council Chambers. Prepared by Scot Neukirch on 10/28/11