Finance Committee

Finance Committee Meeting Council Chambers June 24, 2015 8:00 a.m. Call To Order: Meeting opened at 8:02 am Chairman LoVerde welcomed Paul Nielsen to the Finance Committee and expressed his confidence that he will be a great asset to the Committee. Roll Call: Finance Director Neukirch called the roll for Committee members. Committee Members Present: Chairman LoVerde, Al Weel, John Johann, Paul Nielsen, Village Manager Steve Vinezeano and Finance Director Scot Neukirch Committee Members Absent: Robert Callero Non Committee Members Present: Assistant Finance Director Nannini and Village Attorney Annunzio Approval of Minutes: The minutes from the May 20, 2015 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval: The approval of the Accounts Payable registers for 5/15, 5/22, 5/29, 6/5 & 6/12 were up for approval, motion made and all concurred. New Business Pension Funding Policy: Finance Director Neukirch presented the draft pension funding policy for the Village’s Police and Fire Pension Funds. Neukirch gave background information on why the GASB (Governmental Accounting Standards Board) is now strongly recommending that municipalities adopt a funding ordinance. Neukirch walked through the various sections of the policy. There was discussion about the various actuarial assumptions including the interest rate assumption and how variations can impact the Village’s contribution amount. Neukirch explained various changes that have taken place on the pension boards and how he feels there is a strong team in place. Neukirch also explained how the Village Board’s commitment to the funding of the pensions and the Finance Committee’s involvement in the process has been very beneficial to addressing the pension funding issue. Neukirch explained that the assumptions can be modified at any time and he will bring the policy back to the Finance Committee if it appears assumptions should be modified when the actuarial report is received later in the year. A motion to recommend that the Village Board approve the pension funding policy was made and all concurred. Vehicle License Ordinance Changes: Finance Director Neukirch presented some proposed changes to the Village’s vehicle license waiver of fees ordinance. Neukirch explained that the goal was to clarify the ordinance and help make the ordinance more clearly reflect the process as it is currently being administered in the Finance Department for the waiver of fees. The majority of changes involve requiring that the appropriate registration information be provided at the time of application for the vehicle sticker. Neukirch also explained that there should be only 1 waiver of fee per driver’s license number and that the Mayor is eligible for a free sticker. A motion to recommend that the Village Board approve the changes to the vehicle sticker ordinance was made and all concurred. American Express Rewards Update: Finance Director Neukirch updated the Committee on the current cash and points balances earned to date as part of the American Express Rewards Program. Neukirch also explained that staff is looking in to options of purchasing conference room chairs that were budgeted for. The method of accounting for the transactions was also discussed. Neukirch also explained that the auditors have recommended that the balance of the points be cashed out at the end of each fiscal year. Other Business: At the Mayor’s request, Chairman LoVerde requested that Committee members begin thinking about ways to raise revenue and reduce expenses in the Village. Public Comment: Louella Preston explained that she thought it would be a good idea for the actuary to recalculate last year’s actuarial report with the new assumptions to get an idea of the impact to the Village’s pension contribution resulting from the recommended changes. Preston also question whether the proposed vehicle sticker ordinance changes would take effect immediately or for next year. Executive Session: The Finance Committee went in to executive session at 8:53 am concerning the semi-annual review of executive session minutes. A motion was made to go in to executive session and all concurred Return From Executive Session: At 9:04 am the Committee returned from executive session. A motion was made and all concurred to approve the minutes and release the minutes as decided during executive session. Adjournment: Motion to adjourn was made and all concurred at 9:05 am. Prepared by Scot Neukirch on 6/24/2015