Finance, Taxes and Insurance

FINANCE COMMITTEE May 13, 2013 - Official 5:00 p.m. Members Present: Brian Lauer, Rick Albee, Gil Amborn, and Cindy Gauger Excused: Ron Kluth Also Present: Rebecca Ewald, Lori Peternell, Jeff Dolezal, and Andrew Hunn Lauer called the meeting to order at 5:00 p.m. Motion made by Gauger, seconded by Albee to approve the April 8, 2013 Regular Meeting Minutes. Motion carried unanimously. Andrew Hunn from Northwestern Mutual was present to discuss the Village of Waterford’s Plan Service Agreement. Hunn provided the Committee with a list of policy decisions that Northwestern Mutual is seeking direction on in order to proceed with the new contract. Motion made by Amborn, seconded by Gauger to recommend the following changes to the Village of Waterford’s Plan Service Agreement; motion carried unanimously. 1) Rebecca Ewald and Lori Peternell will remain the Plan Administrators. 2) Plan participants will be allowed to update their address and beneficiary information directly on the ING website. ING will notify the Plan Administrators of any address and/or beneficiary changes. 3) The Plan will continue to automatically “roll-out” the balance for terminated participants into an IRA if their balance is below $5000, less than $1000 is cashed out. 4) The Village of Waterford logo will appear on participant statements or name if logo not feasible. 5) The Village will continue to make annual deposits to ING. 6) The Plan Administrators will receive confirmation of deposits to ING. 7) The Village will need to select a default investment option. Brian Lauer will select an investment from the list of recommended investment options. 8) The Village will continue offering the same investment options to the new platform, less the money market that is no longer available. Discussion was held regarding a proposed timeline for implementing platform change: - June 10th: Finance Committee approves the new mutual fund lineup. Proposed by Brian Lauer, the Map Select Platform will offer 44 funds, many of which are new to participants. 65% of Plan assets will remain in their current fund. The remaining 35% will be transferred into a new fund with similar risk and objectives. - June 10th: Board approves ING platform change, Plan Trustee signs ING’s Service Agreement, Program Highlights and Contract Application - July 1st: A “30 Day Notice” goes out to Retirement Plan participants making them aware of the Plan changes and details on how their investments will be impacted. If an employee desires to switch their funds from an existing fund to a new fund, they have 30 days to make the transaction before their assets are transferred to Map Select. No action is required of the participants. - August 1st: The Retirement Plan enters a “black out period” where participants are not able to make trades in their account or request rollover distributions. We estimate this will take 5-7 days. Following the black-out period, participants regain full access and functionality. Discussion was held regarding the purchase of a sandbagging machine. The week of April 15 the Village declared an emergency due to forecasted flood conditions. The Village President authorized the Director of Public Works to purchase a sandbagger machine so that the Village could provide sandbags to residents. The total amount of the purchase was $5355.00. Staff is seeking direction on where the funds to cover this expense should come from. The Village’s fund balance policy has a provision to allow utilizing fund balance for unanticipated emergency expenditures. Another option could be the leftover funds from the lawnmower purchase in the DPW Major Equipment capital; $19,000 was allocated and the new mower cost $10,498.00. Motion made by Amborn, seconded by Albee to pay for the sandbagging machine from the DPW Major Equipment capital account. Motion carried unanimously. The Committee reviewed Resolution #729 – 2012 Budget Amendment to transfer funds from the Develop and Engineering operational account to the Community Relations capital account for engineering costs for Hwy 83/20. Motion made by Amborn, seconded by Albee to recommend Village Board approve Resolution #729. Motion carried unanimously. Amborn requested the Committee review and update the Village’s financial policy with direction on capital funding. Discussion was held that this would take place during the 2014 budget process. The Committee reviewed Resolution #730 – 2012 Budget Amendment to transfer funds from the Fire Small Equipment operational account to the Fire Small Equipment capital account for truck tools as needed. Motion made by Amborn, seconded by Gauger to recommend Village Board approve Resolution #730. Motion carried unanimously. The Committee reviewed Resolution #731 – A Resolution to Write-off aged Rescue Billing. Each year 3 Rivers Billing provides the Village with the amount of uncollected rescue, TriCare, Medicaid and Medicare billing that should be written off. The total amount to be written off for 2012 is $85,977.49; of which $20,925.88 has been turned over to collection. According to the billing company, accounts cannot be turned over to collection or written off until all activity on the account has ceased. The remaining $65,051.61 represents the assigned amount from Medicare, Badger Care, Title 19, hardships, deceased patients, insurance adjustments, or small balances and therefore not eligible for collection. Motion made by Albee, seconded by Gauger to recommend Village Board approve Resolution #731. Motion carried unanimously. The Committee reviewed Resolution #732 – 2012 Budget Amendment to utilize General Fund Balance. In May of 2012 the Village Board authorized utilization of general fund balance for a number of projects that required outside assistance and were not included in the 2012 budget. Motion made by Gauger, seconded by Amborn to recommend Village Board approve Resolution #732. Motion carried unanimously. The Committee reviewed Resolution #733 – Transfer of Park Impact Fees. In October 2012 the Village Board approved installation of new lights and a retaining wall in the Village Hall Park. Park impact fees will cover 40% of the cost; the remaining 60% the Board approved utilizing General Fund balance. The total cost of the projects was $31,894.54; of which $12,757.82 will be paid with impact fees and the remaining $19,136.72 will be paid from General Fund balance. Motion made by Gauger, seconded by Albee to recommend Village Board approve Resolution #733. Motion carried unanimously. The Committee reviewed Resolution #734 – 2012 Budget amendment to utilize General Fund Balance for installation of new lights and a retaining wall in the Village Hall Park. These costs represent 60% of the total cost. Motion made by Amborn, seconded by Gauger to recommend Village Board approve Resolution #734. Motion carried unanimously. The Committee reviewed Resolution 735 - Amending the Fee Schedule to allow for Temporary Use Permits. Ordinance #601- Temporary uses and structures was passed on April 8, 2013. This resolution provides the update to the fee schedule to charge for the permit. Discussion was held regarding recommending Village Board approval of reducing the fee to $50. Motion made by Amborn, seconded by Gauger to recommend Village Board approve Resolution #734 with a reduced fee of $50. Motion carried unanimously. Motion made by Gauger, seconded by Amborn, to recommend to the Village Board approval of Village prepaid invoices in the amount of $40,714.40. Motion carried unanimously. Motion made by Gauger, seconded by Albee to recommend to the Village Board approval of Village unpaid invoices in the amount of $290,896.81. Motion carried unanimously. Upon motion made by Gauger, seconded by Albee, the meeting adjourned at 6:30 p.m. Motion carried unanimously. Submitted by, Lori Peternell, CMTW Village Treasurer 2