Finance Committee

Minutes Village of Niles Finance Committee Meeting Remote Participation, Zoom September 17, 2020 10:00 a.m. Call To Order Chairman George Alpogianis called the meeting to order at 10:05 am. Roll Call Assistant Finance Director Laurie Nannini called the roll for Committee Members: Committee Members Present: Chairman George D. Alpogianis, George Van Geem, Alan Weel, Jack Drexler, and Joseph Ori Committee Members Absent: None Others Present: Mayor Andrew Przybylo, Village Manager Steve Vinezeano, Deputy Village Manager Hadley Skeffington-Vos, Assistant to the Village Manager Kathy Thake, Finance Director Kent Oliven, Director of Economic Development John Melaniphy, Assistant Finance Director Laurie Nannini, Interim Finance Director Ed McKee, Budget Analyst Conor Schultz, and Administrative Assistant Joy Athanasiou Old Business Small Business Loan Program Update Director of Economic Development John Melaniphy gave an update on the Small Business Loan Program. He stated that the program was approved at the August Village Board meeting and launched September 1, 2020. The Village has received five applications, each requesting the maximum no interest loan amount of $25,000. Staff is in the process of establishing two accounts with Northbrook Bank & Trust, part of Wintrust Community Bank. The Bank required a revised resolution which will be considered by the Village Board on October 22nd. Staff has started reviewing the applications and will begin dispersing funds to eligible candidates once money has been transferred. The Village has allocated $500,000 to fund this program. 2020 Property Tax Levy Discussion Finance Director Kent Oliven opened discussion and presented the Committee with a few options regarding a proposed increase in the Village’s property tax levy. Option A included continuing the 4.9% property tax increase and allocating 100% of those funds to the Police and Fire Pensions. Option B, included the same 4.9% increase, plus the one-time extra increment that can be captured due to the retirement of the Milwaukee/Touhy TIF District, again with all additional funds being dedicated to the Police and Fire Pensions levies. Option C included an increase in the levy of 15.5% with all funds, to cover the full increase in the Police and Fire Pension contributions, as calculated by the actuary. Each Option’s increase would not include previously dedicated revenues from video gaming and cannabis which would continue to go to the Police and Fire Pensions in excess of the actuarially determined contributions. Staff recommended Option B or Option C, as well as a notice in the paper to comply with the Truth and Taxation Act, which allows for better transparency and public comments. The Committee requested that staff prepare a 2-3 year plan to address the large increase in the actuarially determined contributions, including a few scenarios to discuss at the October Finance Committee meeting. Milwaukee/Touhy TIF Update Finance Director Kent Oliven updated the Committee on the current finances of the Milwaukee/Touhy TIF to the committee. He stated the TIF will expire at the end of this calendar year, does not have the money it was projected to have, and, therefore,  Finance Committee would not be able to make all of the purchases that had originally been proposed. Mr. Oliven stated that because there was not as much money left after the negotiated purchase of the former Byline Bank, he recommended keeping all remaining TIF increment money for ten (10) years after the close of the TIF in order to satisfy property tax appeals. After those ten (10) years any remaining money in the account(s) of the former TIF would be refunded through Cook County to all taxing bodies for that TIF district. Mr. Oliven noted that based upon a court case, the Village would have to pay any property tax refunds for which TIF money was not available, so such a strategy would reduce the Village’s risk from future property tax appeals. Approval of Minutes The regular minutes from the August 19, 2020 Finance Committee meeting were presented for approval. A motion was made and all concurred. Accounts Payable Approval The Accounts Payable registers for 2020- 8/21, 8/28, 9/4 were presented for approval. A motion was made and all concurred. New Business Water Account 19960 Adjustment Request Resident Edward Gobbo requested financial relief due to a high water bill he received. He discovered there was a leak at his home and applied for leak relief assistance. Staff reviewed the application and calculated a leak relief adjustment amount of $216.05. Mr. Gobbo requested a $480.88 adjustment to his water account being that he didn’t use the water. After discussion, George Van Geem made a motion, seconded by Jack Drexler to approve the staff recommendation for relief assistance in the amount of $216.05. On roll call, all concurred. Water Account 20118 Adjustment Request Resident Reyna Martinez requested financial relief with regard to a very high water bill she received. Ms. Martinez stated that she could not have used this much water. Water usage for the summer of 2019 was inconsistent with previous years. Our Public Works department reported there was no leak found. Ms. Martinez applied for leak relief assistance in February. At that time the application for assistance was denied being no leak had been found or fixed. Staff was directed to calculate a leak relief amount as if there had been a leak. The Committee agreed to table and address this at the next Finance Committee meeting. 7B Request for 5650 W. Touhy Director of Economic Development John Melaniphy requested reconsideration for the 7B tax levy application for the Chick-Fil-A location at 5650 W. Touhy Avenue. Chairman George Alpogianis requested to table this topic. He stated it would need to be discussed in Executive Session when the full Committee is present. Al Weel and Joseph Ori previously left the Zoom meeting. FY21 Financial Auditor Discussion Finance Director Kent Oliven requested approval to reach out to our current audit firm, Selden Fox, to see if they would provide audit services for one more year at the same rate before going out to RFP for a new firm. He stated that our current audit has been delayed mainly due to Covid-19 and we are a little behind. George Van Geem made a motion, seconded by Jack Drexler, to agree with the staff recommendation to add another year to the audit contract. On roll call, all concurred.  Finance Committee Other Business None Public Comments None Executive Session None Adjournment A motion to adjourn was made at 11:45 am and all concurred. Prepared by Joy Athanasiou on October 13, 2020