Finance Committee

Finance Committee Meeting Council Chambers April 16, 2014 8:00 a.m. Call To Order: Meeting opened at 8:04 am Roll Call: Finance Director Neukirch called the roll for Committee members. Committee Members Present: Chairman Joe LoVerde, Robert Callero, Village Manager Steve Vinezeano and Finance Director Scot Neukirch Committee Members Absent: John Johann Non Committee Members Present: Village Attorney Joe Annunzio, Asst Finance Director Laurie Nannini, and Asst Village Manager Hadley Skeffington-Vos Approval of Minutes: The minutes from the March 11, 2014 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval: The approval of the Accounts Payable registers for 2/28, 3/7, 3/14, 3/21, 3/28 and 4/4 were up for approval, motion made and all concurred. New Business GFOA Certificate of Achievement: Finance Director Neukirch notified the Committee that the Village of Niles Finance Department has received the Certificate of Achievement for Excellence in Financial Reporting for fiscal year 2013. Neukirch recognized Assistant Finance Director Nannini and the Finance Department staff for all the hard work they put in to receiving the award and thanked Dan Berg and his staff from Sikich for their assistance with the audit process. Chairman LoVerde read the news release related to this achievement and recognized the Finance Department for their hard work. FY 14 Auditor Engagement Letter: Finance Director Neukirch presented the recommendation from staff that the 4th year of the 5 year contract with the auditing firm Sikich LLC be renewed. Neukirch explained the reason for some changes in the contract and Lead Auditor Dan Berg also answered questions from the Committee. Motion was made and all approved to recommend that Sikich be renewed as the Village auditors for the FY 14 audit. Appearance and Art Fee: Assistant Village Manager Skeffington-Vos presented a proposed ordinance establishing a .1% Appearance and Art Fee. The fee would be charged on building permits with construction values in excess of $10,000. After discussion and questions from the Committee, a motion was made to send the ordinance back and possibly establish a committee that could more formally develop the plans for the funds and other possible alternatives to the establishment of this tax. Leak Adjustment Update: Assistant Finance Director Nannini presented the leak adjustment activity since the last quarter report. Since the last report in January there have been 3 requests for relief, 2 of which were denied because they did not meet the program requirements. In addition Nannini presented staff’s recommendation that the leak adjustment procedure be changed to only require 1 year’s worth of history prior to an adjustment being made for homes that qualify. There was a circumstance where a request was made, but due to the existing procedure the usage would need to be monitored for over a year before an adjustment could be made. Motion made and all concurred to make the change as recommended by staff. Annual Purchasing Requirements: Finance Director Neukirch provided the list of employees that have access to credit cards and the signed credit card policy statements from each employee as required by the Village’s purchasing manual. There was some discussion concerning possible additional control procedures the Village may want to consider.  Neukirch presented a potential revision to the existing purchasing policies. Neukirch explained that current policy states that all non budgeted items that require going out to bid must come to the Village Board for prior approval to go out to bid. Based on the recent change where the Board expressed the desire to not hold up the process with certain projects by requiring this prior bid approval step, Neukirch recommended that the policy be changed to include “proposed budget” because certain public works projects need to go out to bid prior to the formal approval of the budget document each year. The Committee agreed the current wording would indicate the need for an item to be included in the “approved” budget and therefore projects in the proposed budget would require prior bid approval. Motion was made and all concurred that the staff should bring a revision to the purchasing policy before the Village Board to include items in the “proposed budget” do not require prior bid approval. Annual Debt Reporting: Finance Director Neukirch provided the annual updates to the Committee regarding the Village debt files include all of the records illustrating that the tax exempt status of the debt hasn’t changed and that there are no arbitrage requirements existing for any of the debt. 2014 GO Debt Update: Finance Director Neukirch updated the Committee on the process and results of the 2014 debt issue which had its rating call with Moody’s on April 1 and sale on April 9. Neukirch explained the process and that the Village retained its AA1 rating which is the 2nd highest possible rating a Village can obtain. Neukirch explained the impact of sales tax and property tax and other factors on the rating. Chairman LoVerde recommended the report be put on the Village’s website. FY 15 Budget Status: Finance Director Neukirch explained where the Village is at with the FY 15 Budget process. Bob Callero recommended staff continue to monitor sales tax closely since there have been some lower than expected receipts in the last two months. Neukirch agreed that staff will continue to watch the sales tax returns very closely. Other Business: The owners of 8833 C Washington St came to the Finance Committee to appeal the balance due on the water bill for the property they own but rent out. The last tenant left and did not pay the existing water bill. Finance Director Neukirch explained that staff understood the problems experienced by the owners and in recognition of those issues offered to remove the late charges and allow the owners to pay the balance due over several months. The owners requested that the Committee authorize a reduction in the water bill due. After much discussion and explanation that it is the owner’s responsibility to monitor their property and that the owner is ultimately responsible to the Village for outstanding debt, the Committee directed staff to work out a payment plan with the owner and remove the late fees upon satisfaction of the payment plan agreement. Chairman LoVerde requested an update on the status of certain contracts specifically Wight and Gewalt. Chairman LoVerde also requested that at a future meeting the Finance Committee discuss the possibility of a reduction in fees for the VFW. Public Comment: None Executive Session: None Return From Executive Session: None Adjournment: Motion to adjourn was made and all concurred at 9:22 am. Prepared by Scot Neukirch on 4/16/2014