Finance, Taxes and Insurance

FINANCE COMMITTEE March 12, 2012 - Official 5:00 p.m. Members Present: Brian Lauer, Randy Harrington, Ron Kluth, Rick Albee, Cindy Gauger and Kelly Krause Also Present: Rebecca Ewald, Lori Peternell Lauer called the meeting to order at 5:00 p.m. Motion made by Harrington, seconded by Albee, to approve the February 13, 2012 Regular Meeting Minutes. Motion carried unanimously. Discussion was held regarding Resolution #705 to authorize the transfer of Fire & Rescue Impact Fees in the amount of $5880.84 to the general fund on behalf of expenditures incurred by the Fire Station No. 2 Capital Fund. The Finance Committee recommended and the Village Board approved borrowing of up to $250,000 from the General Fund to cover expenses incurred above the existing amount of capital funds available at that time. Any amount borrowed from the General Fund would be reimbursed by the Fire & Rescue Impact fees over a period of six years or less. As of December 31, 2011 the general fund has been reimbursed in full. Motion made by Harrington, seconded by Gauger to recommend to the Village Board approval of Resolution #705 – Transfer of Fire & Rescue Impact Fees For Fire Station No 2. Capital Fund. Motion carried unanimously. Discussion was held regarding Resolution #706 to authorize the transfer of Library impact fees in the amount of $274.00 to the Library capital fund. In 2010 the Library Board and Village Board approved the expansion of the Library in the space previously occupied by Lakeshores. The project completed with an amount of $57,541.26 that was eligible to be reimbursed by impact fees. To date, a total of $24,671.32 in impact fees have reimbursed the Library capital account leaving a balance of $32,689.94. This amount shall carry over year to year until it is fully reimbursed by impact fees. Motion made by Albee, seconded by Kluth to recommend to the Village Board approval of Resolution #706 – Transfer of Library Impact Fees For Library Capital Fund. Motion carried unanimously. Discussion was held regarding minimum insurance requirements. Ewald stated that in the past the Village has followed the LWMMI recommendation to bond our required bond holders at the minimum bond available and insure at the minimum $250,000 for employee crime/theft. Our insurance agent has relayed that communities the Village’s size have typically insured themselves at the minimum level. Our agent has seen larger cities insured at higher levels. While our insurer cannot receive a firm dollar amount on coverage unless we complete an application for higher coverage, our agent has received an estimate of an additional $1,231 to our current premium for $500,000 in coverage. It was the consensus of the Committee to retain the minimum insurance coverage of $250,000 for employee crime/theft. Motion made by Harrington, seconded by Kluth to recommend to the Village Board to retain the minimum insurance coverage of $250,000 for employee crime/theft. Motion carried unanimously. The Committee reviewed the information regarding SB 438. Ewald stated that it is not anticipated that any action will occur on this bill during this session. Currently the Village distributes 70% of the room tax collected on a percentage basis to the Waterford Chamber, Baymont Hotel and Real Racine. The remaining 30% is being used to assist funding Tina Chitwood’s time through our contract with RCEDC. In the future, should this legislation pass the organizations in which we distribute funds to would need to document their specific use of the funds for tourism related activities in accordance with the statute. When the Village receives room tax funds, 70% of the funds we receive are categorized as promotional and distributed to four categories: Real Racine (30%), Chamber (25%), RCEDC position (20%) and Baymont (15%). The remaining 30% of the funds are categorized as the administrative. The Village Board has designated the funds received as administrative to fund our contract with RCEDC. Should the legislation pass next year with the current language, the Village Board will need to consider eliminating contribution from the promotional account to the RCEDC position, an estimated $6,600. Organizations will also need to document how the funds were utilized for eligible items spent specifically on tourism. The Committee reviewed the draft park impact fee study. The Public Works & Utilities Committee met on February 20 to review the park impact fee analysis. It was the consensus of the Public Works & Utilities Committee that the amount proposed of $1,380.00 was too high for the new homeowner and felt the current fee of $500.00 needed to be increased. Ewald confirmed that the $1,380.00 was based on the wants and needs of the Village. It was proposed to reduce the park impact fee by 65% of the proposed amount and rounding that dollar amount to $900.00. The Public Works & Utilities Committee also recommended to the Village Board the removal of the swimming pool and golf course from the Park Impact Fee Study. Discussion was held by the Finance Committee regarding the proposed $900 fee being an 80% increase over the current fee. Concern was expressed that it may have a negative impact on future development if the totals of impact fees are too high. The Committee felt that the increase in fees should be based on a growth rate calculation. The study indicates that the number of occupied housing in the Village of Waterford was 2,114. If a 5% growth rate per year for the next 5 years and a 3% inflation factor over the next 5 years was used, it calculates to a 40% increase in the impact fee. After lengthy discussion, it was determined to recommend a 40% increase over the current amount which calculates to $700. Motion made by Kluth, seconded by Harrington to recommend to the Village Board a park impact fee of $700. Motion carried 4-1; Gauger nay. Motion made by Gauger, seconded by Kluth to recommend to the Village Board approval of Village prepaid invoices in the amount of $87,005.07. Motion carried unanimously. Motion made by Kluth, seconded by Albee, to recommend to the Village Board approval of Village unpaid invoices in the amount of $160,198.93. Motion carried unanimously. Motion made by Gauger, seconded by Kluth, to recommend to the Village Board approval of Water & Sewer invoices in the amount of $738,647.36. Motion carried unanimously. Upon motion made by Gauger, seconded by Kluth, the meeting adjourned at 6:25 p.m. Submitted by, Lori Peternell Village Treasurer 2