Finance Committee

Village of Niles Finance Committee Meeting Council Chambers June 21, 2017 8:00 a.m. Call To Order Chairman LoVerde called the meeting to order at 8:00 a.m. Roll Call Assistant Finance Director Nannini called the roll for Committee members: Committee Members Present: Chairman Joe LoVerde, Bob Callero, John Johann and Paul Nielsen Committee Members Absent: Al Weel Village Staff Present: Finance Director Jeff Martynowicz, Village Manager Steve Vinezeano, Assistant Finance Director Laurie Nannini, Deputy Village Manager Hadley Skeffington-Vos and Assistant to Village Manager Kathy Thake. Old Business None Approval of Minutes The regular minutes from the May 17, 2017 Finance Committee meeting were up for approval, motion made and all concurred. Accounts Payable Approval The approval of the Accounts Payable registers for 2017-5/19, 5/26, 6/2 and 6/9 were up for approval, motion made and all concurred. New Business Water Acct Appeal for 8254 Knight Assistant Finance Director Laurie Nannini presented the water appeal for 8254 Knight owned by Scott and Aimee Kish. Scott explained that the issue involved an abandoned sprinkler system put in by the prior owner. In March their meter was read and caused a large increase in the amount owed for water. The water was leaking from this system with no visible indication of a problem. They currently owe $4,724.79 after being approved for a $500 leak adjustment. Joe Mondia, the Village Plumbing Inspector, verified that the system was fixed so no further water issues would occur. Chairman LoVerde suggested that the Finance Department calculate a normal water consumption amount at the property and issue an additional adjustment to the resident. A motion was made and all concurred. Fund Balance Policy Discussion Finance Director Jeff Martynowicz stated that the new Fund Balance Policy was brought to the Finance Committee on May 17, 2017. The policy includes 5 funds that are identified as operating funds where an appropriate level of reserves is needed. One question that came up was the percentage of minimum and maximum of our general fund expenditures. The minimum was increased from 35% to a maximum of 45% of expenditures and financing uses which are essentially transfers to other funds. The increase is due to the fact that we are a high sales tax generator. When Jeff looked at other communities who are also high sales tax generators their maximum fund balance is at the 40% level. Some language in the original policy was also revised because it was vague. Bob Callero stated that the budget passed by the Board should be the ruling item. Any revisions to the budget should go to the Finance Committee first and then approved by the Board. John Johann asked if the policy meets the requirements of GASB 54. Jeff responded that it did and that the definitions under GASB 54 are included in the new policy. John asked for a history of the reserve percentages. Chairman LoVerde inquired if the Village is following the current Fund Balance Policy of 25% and Jeff responded that the Village is. Jeff stated that he would make the changes the Committee identified and bring the revised document to the next Committee meeting.  June 21, 2017 Finance Committee Recommendation for Board Deputy Village Manager Hadley Skeffington-Vos requested approval to go back out to RFP to get bids. Chairman LoVerde stated that the idea of rebidding for these services per our ordinance is a good idea since we did not do it for many years. In the big picture the Village is in better shape with Workers Comp claims now. He believes Mesirow has done an admirable job. Village Manager Steve Vinezeano stated that the administrative staff was given the directive to shake things up after each contract. That is exactly what staff has done. That is why the process is being rebid. Hadley stated that she did not know how much training was done prior to Mesirow being hired. Chairman LoVerde questioned the decrease in Workers Comp claims and what that can be attributed to. John was wondering what the program would look like it we renewed with Mesirow and waived the bid process. Paul Nielsen stated that things seem to be working and he would question making a change. Chairman LoVerde stated that nothing would preclude the Village from going out to RFP if Mesirow came in and stated that our premium would increase dramatically. A motion was made to waive the bid process and recommend to the Village Board contracting with Mesirow. All but Bob Callero concurred. Other Business Chairman LoVerde requested that the Committee receive financial statements, budget to actual, on a regular basis and sales tax comparisons and projections with month to date and year to date information going forward. Public Comment None Adjournment: Motion to adjourn was made and all concurred at 8:50 a.m. Prepared by Assistant Finance Director Laurie Nannini on July 26, 2017. 2