Finance Committee

Minutes Village of Niles Finance Committee Meeting Remote Participation, Zoom January 14, 2021 12:00pm Call To Order Chairman George Alpogianis called the meeting to order at 12:00pm. Roll Call Chairman Alpogianis called the roll for Committee Members: Committee Members Present: Chairman George D. Alpogianis, Jack Drexler, Alan Weel, and George Van Geem Committee Members Absent: Joseph Ori Others Present: 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, Budget Analyst Conor Schultz, and Administrative Assistant Joy Athanasiou Old Business Sales Tax Incentive Agreement for 9530 N. Greenwood Ave Director of Economic Development John Melaniphy presented a revised Sales Tax Incentive Agreement with Golf Green Motor Sales LLC which would include a rebate cap of 10 years and $3 to $4.2 million. The Committee requested a financial breakdown of costs to renovate the building. Mr. Melaniphy stated the dealership does not have a detailed construction list until they felt the Village Board was supportive of a Sales Tax incentive Agreement. The Committee Members voiced concerns and opinions. They agreed the redevelopment of the building should be an open book process with verifiable costs and receipts, and that the precedent set by the length of the agreement is an important consideration. John Melaniphy reiterated that the developers do not currently maintain a detailed construction budget, and are eager to receive a decision coming from the Village soon as the Committee has been deliberating this agreement for a significant amount of time. After discussion, The Committee felt the dealership would be a good partner for the Village and was in support of the Sales Tax Incentive Agreement as long as all costs were reviewed and approved. Chairman Alpogianis requested detailed numbers of construction projects be sent to the Village Board for review at the next meeting. The Finance Committee recommended the Sales Tax Incentive Agreement for 9530 N. Greenwood Ave, with a 10 year cap and up to 3 million dollars for qualifying expenses for site renovations, to be sent to the Village Board for discussion and approval. On roll call, all concurred. Approval of Minutes The regular minutes from the December 3, 2020 Finance Committee meeting were presented for approval. A motion was made by Jack Drexler, seconded by George Van Geem, to approve the minutes. On roll call, all concurred. Accounts Payable Approval The Accounts Payable registers for 2020- 12/04, 12/11, 12/18, 2021- 01/01, 01/08 were presented for approval. A motion was made by Al Weel, seconded by George Van Geem, to approve the Accounts Payable registers. On roll call, all concurred.  Finance Committee New Business Discussion of Tax Year 2020 Abatement Ordinances Finance Director Kent Oliven requested permission to move away from the Village Board having to pass annually a tax abatement ordinance and to provide it to Cook County. Alternatively, he, as the Village Treasurer, would create and provide to Cook County a Certificate of Abatement of Tax Levy sheet for every bond, showing the different tax years, original levy, amount abated. Mr. Oliven stated that the change would be more efficient, reducing staff hours, possible legal fees, Village Board meeting time, and the risk that abatements not be turned in on time. George Van Geem stated the levy and abatements are an important part of the Village financial process and would like the process to remain in ordinance form so the levies and abatements are properly documented within official Village minutes. Mr. Van Geem did agree that reporting multiple years at once in a single tax abatement ordinance, rather than passing such an ordinance annually would help reduced paperwork for staff. The other Committee members agreed with Mr. Van Geem. Mr. Oliven stated that he would make that one-time Abatement Ordinance for the Village Board approval which would cover all years within outstanding G.O. bonds, as requested by the Committee. Public Safety Pensions Actuarial Report Bob Rietz from Lauterbach & Amen presented a condensed version of the fiscal year 2020 (FY20) GASB and tax year 2020 (TY20) actuarial reports for the Police and Fire Pension Funds as well as Other Post-Employment Benefits (OPEB). The fire pension fund’s actuarially recommended contribution (ADC) increased by $612,220 to $4,981,958 and the police pension fund’s ADC increased $730,470 to $5,468,331. These increases are due to a variety of factors including revised mortality tables, demographic changes, increased benefits for Tier 2 members imposed as an unfunded mandate retroactively by through State of Illinois legislation in 2019, assumption changes, and change in market value of assets. Please see the full reports for more detail. Water Leak Practice Interpretation Notification Finance Director Kent Oliven presented an updated interpretation for the Water Leak Relief Assistance Program. Mr. Oliven said he is not altering the procedures, but is interpreting existing language to better fit water usage patterns in the contexts of stay- at-home orders. Additionally, if the leak took place during the summer, the Finance Department will look to both prior summer usage and more recent usage for a baseline. The Committee Members had no comments and no action was required from the Committee. Other Business None Public Comments None Executive Session None Adjournment A motion to adjourn was made at 1:46 by Jack Drexler, seconded by Al Weel. On roll call, all concurred.  Finance Committee Prepared by Joy Athanasiou on January 19, 2021