Finance Committee

Finance Committee Meeting Council Chambers October 16, 2013 8:00 a.m. Attendance: Committee Members Present: Chairman Joe LoVerde, John Johann, Robert Callero, Village Manager Steve Vinezeano, and Finance Director Scot Neukirch Committee Members Absent: None Non Committee Members Present: Village Attorney Joe Annunzio, Trustee Hanusiak, Trustee Rosemary Palicki and Community Development Director Chuck Ostman. Call To Order: Meeting opened at 8:00 a.m. Roll Call: Finance Director Neukirch called the roll. Committee members present were Village Manager Vinezeano, Bob Callero, Chairman LoVerde and John Johann. Approval of Minutes: The minutes from the September 11, 2013 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval: The approval of the Accounts Payable registers for 9/6, 9/13, 9/20, 9/27 and 10/4 were up for approval, motion made and all concurred. John Johann asked a question concerning the process for employee expense reimbursements. Neukirch explained the process. New Business Crime Free rental Licensing Fees: Community Development Director Ostman presented to the Committee the proposed changes in the Village of Niles rental licensing fees. Ostman presented schedules illustrating the fee structure in other communities. After some discussion and questions, the Committee recommended that the fee for 10 unit buildings be kept at $200 instead of being reduced to $165 as indicated on the summary schedule. With the proposed change a motion was made and all approved to recommend the fee changes to the Village Board. Cost Sharing Program: Community Development Director Ostman updated the Committee on the status of the flood control cost sharing program. $1.2 million has been budgeted for cost sharing. $1.35 million in applications have been approved. Another 138 requests have been made for assistance. Chairman LoVerde stated that there may be a need to define a cap for the cost sharing program moving forward during the budget process. Retainer for Liquor Commissioner Village Attorney Annunzio presented hourly rate and retainer amounts for the and the Inspector General: new Liquor Commissioner and Inspector General positions. There was discussion as to whether a retainer should be provided and if the decision needed to be sent back to the Village Board. No formal motion was made. American Express Purchasing Card: Finance Director Neukirch reported to the Committee that the Finance Committee is looking in to utilizing purchasing cards from American Express. Neukirch explained that these purchasing cards would be used for large Village purchases. The Village would then receive cash back on purchases at ½%. The initial estimate of how much this could save the Village of Niles in a fiscal year is approximately $37,000. Appropriation Amendment: Finance Director Neukirch presented the FY 2013 appropriation amendment of the Police Pension Fund that will be brought to the Village Board in October. Neukirch explained that Police Pension Fund exceeded budgeted expenses because there were more new retirees during the fiscal year than anticipated and that additional insurance coverage was purchased. Pension Actuarial Reports: Finance Director Neukirch presented current Police and Fire Pension Fund actuarial reports, annual required report to the Village Board and the updated pension  summary. Neukirch explained that for the first time in 11 years the funding level in the pension funds improved. Neukirch explained that this was a direct result of the Village Board’s and staff’s commitment to addressing the pension funding issue. There was also a discussion concerning the investment rate of returns over the years. Annual Treasurer’s Report: Finance Director Neukirch presented the annual Treasurer’s Report that is required to be published in the newspaper each year. Neukirch explained that this is a statutory requirement. Neukirch stated that the ending cash and investments was $94,168,978, the receipts for the year were $79,128,306 and the ending fund balance was $123,233,326 for all funds. Neukirch also explained that there is a list of total vendor payments listed alphabetically and compensation summary provided with the report. Other Business: Chairman LoVerde stated his desire to have the broker duties for the Village’s worker’s compensation and liability coverage insurance be sent out for RFP immediately for the renewal due January 1, 2013. Finance Director Neukirch explained that staff is already 3 months in to the renewal process. There was further discussion on the difficulty that this would present in trying to complete this process in time for January 1 considering all the work that is required and the timing of the request with staff trying to finish the FY 13 audit and beginning the FY 15 budget process in the next 2 months. Public Comment: There was a question on the rental inspection process and a question concerning how Obama-Care would impact the insurance premium. Neukirch explained that the discussion at this meeting was dealing with workers compensation and liability insurance only, not health insurance. Executive Session: None Adjournment: Motion to adjourn was made and all concurred at 10:00 am. Prepared by Scot Neukirch on 10/17/2013