Finance Committee

Minutes Village of Niles Finance Committee Meeting Council Chambers February 27, 2019 9:00 a.m. Call To Order Chairman Dean Strzelecki called the meeting to order at 9:00 a.m. Roll Call Assistant Finance Director Laurie Nannini called the roll for Committee members: Committee Members Present: Chairman Dean Strzelecki, George Van Geem, Jack Drexler, Joseph Ori Committee Members Absent: None Village Staff Present: Finance Director Jeff Martynowicz, Assistant Finance Director Laurie Nannini, Village Manager Steve Vinezeano, Deputy Village Manager Hadley Skeffington-Vos, Assistant to the Village Manager Kathy Thake, Department Heads, Village Staff Old Business None Approval of Minutes The regular minutes from the December 5, 2018 Finance Committee meeting were presented for approval, motion was made and all concurred. Accounts Payable Approval The Accounts Payable registers for 2018- 11/21, 11/23, 11/30, 12/7, 12/14, 12/21, 2019- 1/4, 1/11, 1/18, 1/25, 2/1, 2/8 were presented for approval. A motion was made and on roll call, all concurred. New Business 6b Tax Incentive Renewal Economic Development Coordinator Ross Klicker requested an extension of the 6b Tax Incentive Program for Woodward, Inc. located at 6250 and 6300 Howard. Ross stated Woodward is a great company for the Village of Niles. Their employment has exceeded expectations and continues to grow. They have estimated 1.6 million in spending in 2019 alone. The renewal would be for another 10 years. Chairman Strzelecki made a motion to concur with staff’s recommendation to extend the 6b incentive. Motion was second and on roll call, all concurred. FY 2020 Budget Review Village Manager Steve Vinezeano and Finance Director Jeff Martynowicz presented the FY 2020 Annual Operating Budget. Jeff mentioned the use a new performance based budgeting program which identifies what each dollar amount will accomplish in the departments. It also tracks performance measures which help achieve goals. Jeff gave an overview of the budget stating a projected beginning fund balance of 79.5 million for all funds with total revenues of 86.9 million and expenditures, without pension funds, of 103.5 million. The projected ending reserve balance for all funds is just under 63 million dollars. Jeff stated the budget shows revenue stability with no new taxes and fees. The General Fund is the main operating fund for the Village and represents 58% of total expenses. The Village continues to fund the police and fire pension funds at 100% based on the actuarial required contribution. The General Fund transfers 4.52 million to the Police Pension Fund and 4.2 million to the Fire Pension Fund. Jeff continued with an overview of the various funds, highlighting the largest expenses and major revenues and their impact on the budget. There will be a 2% increase in sales tax from the FY 2019 budget. He mentioned a significant rate reduction to the IMRF plan, the non-Police and Fire pension, saving $350,000. There will be a substantial decrease in the Water Fund with the new water system in place. No rate increase is projected. There are two upcoming projects in the Capital  February 27, 2019 Finance Committee Projects Fund including street light replacement and a police garage. George Van Geem asked questions regarding the replacement of the street lights. Steve Vinezeano and Fred Braun responded. Additional questions from the committee were addressed. Chairman Strzelecki and George Van Geem commended staff for their hard work and efforts in creating the budget. Chairman Strzelecki entertained a motion to recommend the FY 2020 Budget, as presented, to the Village Board on th March 12 . Second by George Van Geem. On roll call, all concurred. Other Business None Public Comments None Executive Session None Adjournment Motion to adjourn was made at 10:10 am and all concurred. Prepared by Joy Athanasiou on March 11, 2019. 2