Finance Committee

Village of Niles Finance Committee Meeting Council Chambers April 18, 2018 8:00 a.m. Call To Order Chairman LoVerde called the meeting to order at 8:18 a.m. Roll Call Assistant Finance Director Nannini called the roll for Committee members: Committee Members Present: Chairman Joe LoVerde, Bob Callero, Paul Nielsen, John Johann and Al Weel Committee Members Absent: None Village Staff Present: Finance Director Jeff Martynowicz, Village Manager Steve Vinezeano, Assistant Finance Director Laurie Nannini, Deputy Village Manager Hadley Skeffington-Vos, Assistant to the Village Manager Kathy Thake Old Business None Approval of Minutes The regular minutes from the March 21, 2018 Finance Committee meeting were presented for approval, an addition was made to final line of budget review to state “as presented”, motion made and all concurred. Accounts Payable Approval The approval of the Accounts Payable registers for 2018 3-16, 3-23, 3-30 and 4-6 were up for approval, motion made and all concurred. New Business Matrix Study For Finance Dept. Jeff Martynowicz introduced Alan Pennington and David Lee from Matrix Consulting Group to present and report the findings of the Finance Department study. David recommended ways to restructure staff. Alan suggested applying for the Government Finance Officers Association (GFOA) Prestigious Budget Presentation Award which acknowledges that the budget includes all that is required as an industry standard. He also recommended a bi-monthly water billing cycle, much stricter policies for payments and due dates and placing priority on implementation of the Automatic Meter Reader (AMR) for all meters. Alan also suggested that Munis, the new software program, be used for all key financial and payroll functions and that all staff be fully trained on the software. Chairman LoVerde suggested another meeting to discuss and review any proposed future changes related to the audit. Martynowicz mentioned that they have already started making some of the major changes within the department such as going live with the new software in financials, the restructuring of staff and a large change with purchasing thresholds. He stated that discussions have begun on ways to make modifications to the budget to meet GFOA requirements. Bob Callero requested that Martynowicz prioritize the order of additional upcoming changes in the department, including full AMR participation for all residential meters. Discussion and questions will continue at the next Finance Committee meeting. FY 2018 Selden Fox Audit Jeff Martynowicz stated that they are in the third year of a five year contract with Selden Fox to conduct fiscal year end audits. He mentioned that their fee is fixed and incorporated into the budget. Martynowicz requested approval of letter to begin audit for FY 2018. Chairman LoVerde questioned who the audit committee is as stated in the letter from Selden Fox. Martynowicz said that it was referring to the Finance Committee and would request an update of the letter to reflect the change. Motion was made to approve the Seldon Fox Audit Engagement Agreement and all concurred.  April 18, 2018 Finance Committee Family Services Financial Wellness Policy Family Services Director Tony Hollenback presented ways this policy helps the increasing number of residents needing assistance by offering short term/limited financial support and preventative programs and workshops. Hollenback explained the application process and criteria looked at when determining how and when funds are disbursed. His vision is to reduce this line item in the budget to be a donor driven program by strengthening relationships with our business community and other agencies. Currently the budget is $8000. There is between $11,000 and $12,000 in the 502 account referred to as the Financial Wellness Fund which consists of funds from donations and fundraisers. Chiarman LoVerde requested a copy of the application process and funding mechanism. Hollenback stated this is a revised policy. Main revisions to the policy are that assistance is now given on an 18 month basis instead of 12 month and the amount of assistance given has been reduced from $500 to $300 during that period. They are now using an electronic system to look up resident history of assistance. The resident is now responsible to follow-up with their counselor to complete their financial wellness plan. Family Services has a dedicated follow-up program to check in with residents who have received assistance. FY 2019 Budget Update Jeff Martynowicz stated that the village board reviewed the budget on three separate occasions after the March meeting and it will be up for approval at the village board meeting in May. Chairman LoVerde clarified that the $732,607 for the second floor renovation at the Administration building that was discussed at the last meeting was put back in the budget. Martynowicz confirmed that it was. Bob Callero stated a major concern. He wanted it clearly noted that he and other Finance Committee members did not approve the $176,000 renovation of the cafeteria room. Callero did not approve it. Chairman LoVerde felt the same way and said the minutes should reflect as presented. Chairman LoVerde wanted it clearly understood that it was not presented back to the Finance Committee and it was not approved by the Finance Committee. It was stated that seated board members were reaching out to committee members to ask what had been approved. Village Manager Steve Vinezeano stated that there was confusion on what was presented and what was approved. LoVerde stated that it was a communication issue. Quarterly Reports Assistant Finance Director Laurie Nannini provided the Committee with the Finance Department’s Master Shut-Off List for water accounts and payment plans, Leak Applications and adjustments, and the Illinois Debt Recovery Program recap. She mentioned that during the spring season we are more active with water shut-offs. Nannini stated that the Malok family had not paid their bill according to the plan that was set by the Committee in December. Their current balance is $2100. If not paid, water will be shut-off May 2nd. Village manager Steve Vinezeano stated that we need to be stricter when it comes to delinquent water billing payments. He stated that we are the only Municipality that allows bills to get so high. Vinezeano stated that we should not allow bills to get over $300 so Family Services can assist if needed. Family Services Director Tony Hollenback requested a monthly list of delinquent water accounts to be proactive and send a letter to residents so they know Family Services is available to help. He also suggested possibly adding an area to water bills for residents to make contributions to the Wellness Fund to assist with struggling neighbors. Bob Callero mentioned that we send a letter reminding the st Malok family of the shut-off if payment is not received by May 1 . Nannini stated that the letter would go out that day, April 18, 2018. Other Business None Public Comments None 2  April 18, 2018 Finance Committee Executive Session: None Adjournment: Motion to adjourn was made and all concurred. 3