Finance Committee

Finance Committee Meeting Village Hall, 2nd Floor Conference Room November 19, 2014 8:00 a.m. Call To Order: Meeting opened at 8:03 am Roll Call: Finance Director Neukirch called the roll for Committee members. Committee Members Present: John Johann, Al Weel, Robert Callero, Village Manager Steve Vinezeano and Finance Director Scot Neukirch Committee Members Absent: Chairman LoVerde Non Committee Members Present: Mayor Przybylo, Attorney Joe Annunzio, Economic Development Coordinator Ross Klicker, Economic Development Director Chuck Ostman, Legal Asst Kathy Thake, Human Resources Coordinator Kathy Barnat Approval of Minutes: The minutes from the October 22, 2014 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval: The approval of the Accounts Payable registers for 10/10, 10/17, 10/24, 10/31 and 11/7 were up for approval, motion made and all concurred. New Business 6B Incentive Update: Economic Development Coordinator Klicker reviewed the annual summary of existing Niles 6B incentives. He noted that the assessed value went down at 6300 Howard, but in all other cases it increased. Klicker also noted that the 6B incentive procedures need to be updated to address 6B extensions. Shure Corporation sent a representative to request an extension to their existing 6B incentive. This request is last minute because their attorneys for Shure thought that the 10% assessment level continued through calendar 2015 but they were just notified in October by the County that it ends in January of 2015. The representative explained that Shure is planning on making improvements to one of the buildings of approximately $4 million including a museum. They are also looking to expand the back building and possibly an expansion in Niles to include a distribution center. They anticipate adding 25 to 50 employees in the next 5 years. Due to the short notice, Shure did not provide the usual financial documentation requested by the Committee. A motion was made and all concurred to recommend to the Village Board approval of the 6B incentive extension subject to Shure’s providing the Village Board the necessary documentation. Public Arts and Culture Program Fee: Mayor Przybylo encouraged the Finance Committee to recommend approval for the proposed Public Arts and Culture Program Fee. The Mayor feels it will be a good way for the commercial community in Niles to support cultural development within the town. The Committee asked questions which were responded to by staff. A motion was made and all concurred to recommend that the Village Board approve the new fee. Annual Audit Review: Finance Director Neukirch gave a brief overview of the audit process and then introduced lead auditor Dan Berg who gave an overview and answered questions from the Committee on the audit and audit process. Mr Berg explained that the audit went smoothly, gave some recommendations on what parts of the audit to focus on and reviewed upcoming changes to the Audit process. The auditor and staff responded to questions from the Committee. Mr Berg explained that the staff was cooperative and professional. A motion was made to recommend that the Village Board accept the FY 14 CAFR and all approved. Annual Insurance Renewal: Finance Director Neukirch gave an overview of the progress that has been made to this point with the Village’s liability and workers compensation insurance coverage program. Dan Mackey and Tom Collins from Mesirow went over the specifics of the  renewal. The biggest change was the recommendation that the Village join the Illinois County Risk Management Trust (ICRMT) for its workers compensation stop loss coverage. With the new recommendation the Village would lower its self- insured retention from $700,000 per claim to $300,000 per claim. There is an increase in the premium of $97,000 for the reduced retention, but Mesirows calculations indicate that this will help save the Village money by reducing the amount paid out for claims. The Village will be required to transition its new claims administration to the ICRMT. Todd Greer from the ICRMT answered questions from the Committee about the program. There also was discussion about whether the Village should purchase terrorism coverage that it previously did not. Mesirow will follow up with additional details on this option. Motion was made and all approved to recommend the Village Board approve the insurance renewal as presented. Bob Callero left the meeting at 9:30 am. Quarterly Water Delinquency and Leak Adjustment Update: Finance Director Neukirch updated the Committee on the status of the shutoff program for water customers who have become delinquent on their water bills. Neukirch explained how successful the program has been and how the process has collected over $160,000 of delinquent water bills due the Village. Neukirch recognized the Village Manager for his support in the program and the Finance Department for their hard work in implementing the program. Neukirch also reviewed with the Committee the payment plan report and leak adjustment reports. Quarterly Illinois Debt Recovery Program Update: Finance Director Neukirch presented the status of the Village’s submissions to the Illinois Debt Recovery Program of delinquent fees/fines due the Village. To date the State has received $459,121.86 in delinquent fees/fines from the Village that are waiting to be matched against eligible reimbursements from the State to the respective individuals. $113,064.36 has been withheld from eligible reimbursements from the State. $110,920.65 has actually been received by the Village. Finance Director Neukirch explained that this has been a very successful program which has facilitated the collections of these outstanding fines. Neukirch stressed the importance of the Village IT Department and the work that they have done in keeping this process moving Update on MSDC Initiative: Finance Director Neukirch explained that this year the Security and Exchange Commission (SEC) announced The Municipalities Continuing Disclosure Cooperative Initiative(MCDC) to address violations of representations made by issuers in official statements about past compliance with continuing disclosure requirements. Official statements for municipal bond offerings must contain a description of any instance in the previous 5 years in which the issuer failed to comply in all material respects with the past continuing disclosure obligations. The MCDC is asking issuers to self-report to the SEC if they are aware of a material misstatement in their annual continuing disclosure filings. Each underwriter is also required to report if they feel there has been a material misstatement. Neukirch explained that the only possible issue was back in 2005 when the Village’s continuing disclosure documents were filed 2 days late. Neukirch was not working for Niles at the time and does not know why they were filed late. But Neukirch explained that based on all the information provided and discussions with Ehlers and the Village’s Attorney, that he feels this is not a material event and does not require self-reporting to the SEC. Neukirch explained that the information will be provided to the Village Board also. TIF Joint Review Board: Finance Director Neukirch explained that the annually required TIF Joint Review Boards will be held on Friday, November 21 at 10:00 am at the Village Hall. Neukirch gave a brief overview of the reports and the requirements pertaining to the Joint Review Boards. Other Business: None Public Comment: Louella Preston asked if an update on new Tifs would be discussed at the upcoming Joint Review Board meeting. Neukirch explained that he was not sure and would check with Economic Development Coordinator Klicker. Executive Session: None Return From Executive Session: None Adjournment: Motion to adjourn was made and all concurred at 9:48 am. Prepare20d by Scot Neukirch on 11/20/2014