Finance Committee

Finance Committee Meeting Council Chambers July 18, 2012 8:00 a.m. Attendance: Committee Members Present: Chairman Joe Lo Verde, Mayor Robert Callero, Village Manager Van Geem, John Johann and Finance Director Scot Neukirch Committee Members Absent: None Non Committee Members Present: Trustee, Palicki, Trustee Louella Preston, Tom Robb, Kathy Thake, Kathy Barnat and Village Attorney Joe Annunzio Call To Order: Meeting opened at 8:01 a.m. Approval of Minutes: The minutes from the June 20, 2012 were up for approval with one minor change to include the specific code referenced in the other business section. Motion made, all concurred. Accounts Payable Approval: The motion was made and all concurred to approve the Accounts Payable registers for 6/15, 6/22, 6/25, 6/29 and 7/6 New Business IMRF Audit Report: Finance Director Neukirch and Personnel Coordinator Kathy Barnat reviewed the results of the recent IMRF audit. Neukirch explained that IMRF audited the Village’s payroll documentation and procedures to verify if the Village was in compliance with IMRF regulations. The audit resulted in several findings regarding the Trustee’s ability to be enrolled in IMRF and various part time employees that could or already have exceeded the 1000 hour enrollment requirement in the current and past years. Attorney Annunzio informed the Committee that he was unable to locate any records that the resolution allowing Niles Trustees to participate in IMRF was passed at a Niles board meeting. Staff will look in to this and work with IMRF to resolve any related matters. PACE Audit Report: Finance Director Neukirch reviewed the results from the calendar year 2011 PACE audit report. Neukirch explained that the PACE auditors come out on an annual basis to make sure that the Village’s reporting of the financial information related to the operation of the Niles Courtesy Bus is in compliance with generally accepted accounting principles. There were no findings by the PACE auditors noted in their report. Neukirch also provided an additional schedule which more clearly illustrated the cost to the Village for the operation of the Niles Courtesy Bus. For calendar year 2011 the Courtesy Bus system cost the Village of Niles $643,616 to operate. In 2012, PACE provided the Village of Niles an additional $75,193 of funding for the amount Niles went over budget. If this additional funding is factored in to the 2011 audited balance, the cost to the Village for the Courtesy Bus is reduced to $568,423. Trustee Preston requested the revenue section include a footnote referencing the note section that provides additional information pertaining to Niles not charging people for riding the Courtesy Bus. Financing of Fire Vehicles: Finance Director Neukirch updated the Committee on the financing of the Fire Department vehicles that was previously presented at the June meeting. The funding and all related requirements were completed on July 12 in time to take advantage of the manufacturer’s discounts. The total financed was $792,746 and the first payment is due August 1, 2012 with the final payment being made on August 1, 2016. Accounts Payable Approval: As requested by Chairman Lo Verde at the June Committee meeting, Finance Director Neukirch reviewed the State statutes to confirm that Niles is in compliance with its accounts payable procedures and surveyed other communities on their accounts payable practices. Neukirch provided the relevant statutes and also provided draft recommendations to the Committee on how the process might be improved to be more open and transparent. Attorney Annunzio reviewed Neukirch’s  recommendations and confirmed they did not conflict with State requirements. There was further discussion on the accounts payable recommendations and questions concerning payroll information were also raised. Attorney Annunzio will look to see if there are any existing Village codes regarding approval of bonuses for payroll. The recommended changes to the accounts payable code will be presented at a future Village Board meeting. Sister Cities Finances: Chairman Lo Verde opened with his desire for clarification on the relationship between the Village of Niles and the Niles Sister Cities. There is confusion as to whether or not the Niles Sister Cities is governed by the Village of Niles. Village Manager Van Geem and Attorney Annunzio explained that the Niles Sister Cities is a separate 501-C-3 organization and therefore is not technically governed by the Village of Niles. Niles does have a commission which was created to oversee the operations of the Niles Sister Cities organization. There was further discussion pertaining to whether or not the 501-C-3 status is up to date, when the Sister Cities has its meetings and other operational issues. Mayor Callero directed Attorney Annunzio to draft a memo to the Village Board explaining the Village’s role and responsibilities as they pertain to the Niles Sister Cities. Annunzio clarified that this memo will be written from his perspective as Village Attorney. Village Manager Van Geem explained that the next Sister Cities meeting will be in November and many of the questions raised would be better addressed at that meeting. Other Business: Village Manager Van Geem provided information concerning renovations at the Niles Police Station which will require the Milwaukee Touhy TIF budget to be revised and payments to be made to the various taxing districts. The information provided will be discussed at the August Finance Committee meeting. Trustee Preston asked whether expenses related to the Ash Tree removal resulting from the Emerald Ash Bore Beatle infestation should be charged to the Beautification Committee’s related line items in the budget or somewhere else. The Committee recommended that Public Works Director Jochim be consulted for his opinion. There is already a line item in the budget for annual tree replacements and the Committee believes that is where these expenses would most likely be charged. John Johann asked Finance Director Neukirch for an update on the annual Village audit. Neukirch explained that the auditors are out this week doing their field work and the report should be finished by the required due date of October 31. John Johann asked Finance Director Neukirch on the status of filling the vacant clerk position in the Finance Department. Neukirch explained that the position has not been filled and it has been difficult on his department operating short handed for such a long period of time. There is another agenda item being presented to the Village Board at the July meeting requesting authority to increase the amount offered to potential candidates for the vacated clerk position. Adjournment: The meeting adjourned at 9:21 am. Next Meeting The next Finance Committee meeting is tentatively scheduled for Wednesday August 15, 2012 at 8:00 a.m. in the Council Chambers pending the members’ availability. Prepared by Scot Neukirch on 7/18/12