Finance Committee

Minutes Village of Niles Finance Committee Meeting Village Hall Large Conference Room 218 September 18, 2019 9:00 a.m. Call To Order Finance Director Jeff Martynowicz called the meeting to order at 9:10am. A motion was made to appoint George Van Geem as Interim Finance Committee Chairman. On voice vote, all concurred. Chairman George Alpogianis joined the meeting at 9:25am. The Committee no longer required an Interim Finance Committee Chairman. Roll Call Finance Director Jeff Martynowicz called the roll for Committee members: Committee Members Present: Chairman George D. Alpogianis, Jack Drexler, George Van Geem, Joseph Ori, Al Weel Committee Members Absent: None Village Staff Present: Finance Director Jeff Martynowicz, Village Manager Steve Vinezeano, Assistant Finance Director Laurie Nannini, Management and Budget Analyst Conor Schultz, Economic Development Coordinator Ross Klicker, Assistant to the Village Manager Kathy Thake, Village Clerk Marlene Victorine, Administrative Assistant Joy Athanasiou Old Business None Approval of Minutes The regular minutes from the August 21, 2019 Finance Committee meeting were presented for approval. A motion was made and all concurred. Accounts Payable Approval The Accounts Payable registers for 2019-8/16, 8/23, 8/30, 9/6 were presented for approval. A motion was made and all concurred. New Business 7B Request for 5650 W. Touhy Economic Development Coordinator Ross Klicker presented a 7B Request for a new Chick-Fil-A restaurant opening at 5650 W. Touhy, the previous site of Brickhouse Tavern. Chick-Fil-A is requesting an endorsement from the Village of Niles to apply for the 7B Tax Incentive Program. Brian Liston and Mark Rogers, representing Chick-Fil-A, were present to address questions and concerns. After discussion, a motion was made by Al Weel, seconded by George Van Geem, to approve the 7B recommendation be sent to the Village Board. On roll call, all concurred. 7B Request for 8575 Golf Rd Economic Development Coordinator Ross Klicker presented a 7B request for the property at 8575 Golf Road, a potential Chick-Fil-A location. Chick-Fil-A is requesting an endorsement from the Village to apply for the 7B Tax Incentive Program. Brian Liston, representing Chick-Fil-A, addressed questions and concerns. After discussion, a motion was made by Al Weel, seconded by George Van Geem, to approve the 7B recommendation be sent to the Village Board. On roll call, the vote was as follows: Ayes 4 Alpogianis, Van Geem, Ori, Weel Nays 1 Drexler Forensic Audit Discussion Finance Director Jeff Martynowicz presented proposals from three auditing firms that have not done previous work for the Village of Niles. The scope and time period for the forensic audit was determined. All proposals include testing of Village’s credit card use, review of the Village’s Purchasing Policy, and any non-compliant  September 18, 2019 Finance Committee purchases made between 2015 and 2019. A motion was made by Chairman Alpogianis to retain Plante Moran to perform a forensic audit. After further discussion of the proposals, Chairman Alpogianis amended his motion. A new motion was made by George Van Geem, seconded by Al Weel, to retain Miller Cooper to perform a forensic audit. On roll call, all concurred. FY 2019 Fire and Police Actuarial Reports Finance Director Jeff Martynowicz presented the Police and Fire Actuarial Reports for the upcoming year. The recommended contribution for the Fire Pension Fund is 4,369,738, an increase of 160,533 and $4,737,861 for Police Pension Fund, an increase of 214,806. A total combined increase of $375,339 for both funds. With this contribution, the Fire Pension Fund will be funded at 42.1% and the Police Pension fund will be funded at 39.7%. The Finance Committee discussed concerns with the unfunded portion of the pensions and ways to make additional contributions to the funds in the future. The Finance Committee agreed to meet at a later date to establish a plan. A motion was made by George Van Geem, seconded by Joe Ori, to accept the FY 2019 Actuarial Reports. On roll call, all concurred. 2019 Property Tax Levy Finance Director Jeff Martynowicz presented the staff recommendation for the 2019 Property Tax Levy. The recommendation includes a 4.9% increase to the Corporate Levy. The increase will generate an additional $265,332 for the Police and Fire Pension Funds. A motion was made by Jack Drexler, seconded by George Van Geem, to recommend the 2019 Property Tax Levy with the 4.9% increase to the Corporate Levy. On roll call, all concurred. Discussion and Consideration of Chapter 94 Taxation Chairman George Alpogianis stated the Illinois Municipal League has made a recommendation to all Illinois municipalities to receive certification for Cannabis Taxation by October 1, 2019. This taxation will add an additional 3% tax on cannabis sales for local businesses if cannabis is made legal on January 1, 2020 and if it is passed by the Village of Niles Board. A motion was made by Al Weel, seconded by Jack Drexler, to recommend Chapter 94 Taxation, Article XIV Municipal Cannabis Retailers’ Occupation Tax, Section 94-290 through Section 94-294 to the Niles Code of Ordinances. On roll call, all concurred. Other Business Jack Drexler voiced his concern about visible water damage and possible mold on the exterior of the Niles Police Station. Steve Vinezeano said the problem has been identified and is being worked on by the Niles Public Works Department. Public Comments Mayor Andrew Przybylo made a request to the Finance Committee to attend an Economic Summit to identify and fix problems within the Village and to help grow our economy. Mayor Przybylo voiced his concerns about a new Police Garage to be constructed on Touhy Avenue. Resident Paul Heck also voiced concerns about the new Police Garage. Executive Session None Adjournment Motion to adjourn was made at 11:04am and all concurred. Prepared by Joy Athanasiou on September 20, 2019. 2