Finance Committee

Finance Committee Meeting Council Chambers September 22, 2015 8:00 a.m. Call To Order: Meeting opened at 8:00 am Roll Call: Finance Director Neukirch called the roll for Committee members. Committee Members Present: Chairman LoVerde, Bob Callero, John Johann, Paul Nielson and Al Weel Committee Members Absent: None Village Staff Present: Village Manager Vinezeano, Finance Director Neukirch, Assistant Finance Director Nannini, Village Attorney Annunzio, Legal Assistant Thake, Community Development Director Ostman, Economic Development Coordinator Klicker and Public Works Director Anderson Approval of Minutes: The minutes from the August 19, 2015 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval: The approval of the Accounts Payable registers for 8/14, 8/21, 8/28 and 9/4 were up for approval, motion made and all concurred. New Business Investment Option Presentation: Chairman LoVerde asked the Committee if they would be interested in a presentation concerning an annuity investment option for the Village. The Committee requested that information on the investment be provided in advance for their review. After the information has been reviewed, the Committee will determine if this item will be placed on a future agenda. Potential Investment Advisor: Finance Director Neukirch introduced Courtney Soesbe from PMA. The Finance Department is looking for assistance with the investment of the Village’s non pension reserves. Soesbe from PMA gave a presentation to the Committee on the various investment services PMA could assist the Village with. Soesbe explained that PMA’s per transaction fee includes a cash flow analysis, investment policy review, collateral monitoring, credit monitoring, safekeeping charges, wire transfer fees and other administrative costs. Soesbe explained that the fee currently on CDs is averaging about 15 to 20 basis points and 5 basis points on treasury securities. Soesbe answered questions from the Committee. The Committee requested a more detailed breakdown of the fees and a review of the Village’s current investments from PMA. Appendix D annual update: Finance Director Neukirch presented the final Appendix D ordinance that will be up for approval at the September Board Meeting. Neukirch explained that the changes to fees had previously been discussed by the Finance Committee and he just wanted to bring the final ordinance to them in case there were additional questions. There were no additional questions from the Committee. 9101 Greenwood purchase: Village Manger Vinezeano gave some brief comments concerning the purchase of 9101 Greenwood. There was discussion with Public Works Director Anderson concerning the operations/maintenance of the property. Finance Director Neukirch updated the Committee that the Village Board will be voting on a reimbursement resolution and an appropriation amendment regarding the purchase of 9101 Greenwood. There was a lot of discussion on whether the purchase of the property should be considered a storm water project and therefore be paid by the Village’s ¼% sales tax increase. There was also discussion as to whether or not the ongoing operational costs should be paid by the ¼% sales tax increase or be paid out of the General Fund. Much of the concern by the Committee centered around the need to provide funding for the Village’s pension funds. Back in 2012 when the Village passed the ¼% sales tax increase, the money generated by the increase was committed to storm water relief and pension funding. If the cost of the next phase of  this project which is estimated at approximately $7.5 to $8 million is added to the debt already incurred, estimated future debt for the Cleveland St project, the purchase of 9101 Greenwood, ongoing 9101 Greenwood maintenance/operational costs, cost sharing expenses and possible future small storm water relief projects, there will not be much, if any ¼% sales tax available in the future to be contributed to the Police and Fire Pension Funds. Therefore the Committee recommended that the estimated total project costs for the 9101 Greenwood storm water relief project be reduced from $12 million on the reimbursement resolution to $4 million. Finance Director Neukirch explained that the $12 million was not committing the Village to issuing that much debt. Staff explained that the $12 million estimate was made up of $2.6 million for the property acquisition and the increase of the current estimated $7.5-$8 million for the project since this project is potentially not going to start for 5 or more years. Finance Director Neukirch will confirm with Chapman and Cutler if the reduction in the resolution to $4 million will have any adverse impact. A motion was made to reduce section three of the reimbursement resolution from $12 million to $4 million, all concurred. RFP Financial Advisor for New Water Supplier: Finance Director Neukirch informed the Committee that RFPs were sent and collected from 3 firms to potentially serve as a financial advisor for the new water supplier project. The 3 firms that responded were PMA, Ehlers and Speer. The selected advisor will most likely begin some preliminary work for the project and will eventually be brought to the Village Board for approval as required by the Village’s purchasing policy. Other Business: None Public Comment: Resident Chris Hanusiak explained that he felt the expenses associated with the Maryland project for $5.3 million are on the Village’s website. Executive Session: The Committee went in to executive session at 9:30 am to discuss Village lease agreement negotiations. Return From Executive Session: The Committee returned from executive session at 9:51. Chairman LoVerde stated that Village did not purchase 9101 Greenwood so that the Village could host the Italian festival that was recently held there. The Village purchased the property for storm water retention and possibly the future site of a festival park. Adjournment: Motion to adjourn was made and all concurred at 9:52 am. Prepared by Scot Neukirch on 9/23/2015